Course Work Assignment Sample

1.1 Introduction

International economic investment has a direct impact on the economic growth of the world through flourishing the stability of economic conditions. This is one of the effective strategies that have been applied by maximum countries to enhance the performance of the economic status of those specific countries. The main aim of this study is to analyse the impact of “foreign investment” on the growth of the economy of particular countries for legal policies. “Foreign investment” is an effective tool that is used in the management of foreign economic growth. This is one of the major effective tools for enhancing the development of the economy through managing investment treaties in legal statement. This research has focused on investigating the impact of treaties on the perception of the public. This “foreign investment” and disputes in government have developed backlash within the perception of the public within the company. Through analysing the impact of strategies that have been applied by the government to investigate and regain legitimacy in international investment.

1.2 Research background

Foreign investment has a direct influence on the development of the economy and enhances the performance of a particular country. The current time countries use this as an effective strategy to improve the performance and condition of economic growth. There are some disputes and issues that are faced by the government and the prominent state of the country in terms of building mutual investment policies with “foreign countries” for legal statement. [1]. The disputes and issues have developed perceptions among the civic of the country and this is one of the major reasons behind backlashes among the public. This is directly associated with lowering the performance of the country in terms of bonding with other countries economically[2]. The investors are one the responsible positions for mitigating the issues and disputes faced by the government and p states of the prominence of a particular country.

Figure 1.1: Global foreign direct investment

(Source: imf.org, 2022)

Global direct investment is one of the effective tools that is used in managing the financial performance of countries such as The UK, China, and others. There are issues faced by countries in terms of developing and maintaining the investment relationship with other countries according to legal law. One of the effective strategies is bilateral treaties which are used in the management of performance of the economic condition of countries. The disputes and issues faced by the government and investors are resolved through implementing bilateral treaties and this tool helps the government to maintain the standard of the economy. The global direct investment was at its peak point in 2006 which was around 3tn and this tool has a direct impact on the development of the economic condition of the countries according to legal law. In 2018 the global direct investor range was around 2 tn which is effective for enhancing the performance of the countries[3].

1.3 Research rationale

“Foreign investment” enhances the standard and growth of the economic performance of countries. Several countries have implemented this tool of “foreign investment”. Investors are responsible for solving the issues that arise within the governmental and prominent states. This research has focussed on the performance of the countries such as China, the UK, and the USA in terms of applying FDI which is a current effective tool for maintaining the growth of the financial state of the countries. The growth of FDI in the UK was higher in 2016 and that was around 500 bn and this is effective for the growth of the country in the financial sector[4]. This is one of the major competitive advantages of this country to become more competitive in global competition according to legal law and this is important for managing the regulation of laws and legal factor of the government. This research is the rationale for identifying the issue and disputes faced by prominence and regaining litigation to resolve the issues in terms of making strong strategies for the governments of the countries. The growth of the FDI was around 200BN in 2018 in China, which was higher than in previous years. This is important for countries to implement investors for resolving issues and disputes in financial growth that is effective for managing the performance of the countries.

Figure 1.2: Foreign Direct Investment

(Source: imf.org, 2022)

This research has highlighted the importance of FDI and the impact of foreign investment on the perception of the public which is required for managing legal law. There are some disputes which will need to be resolved through applying bilateral treaties and that has helped the countries such as The UK, USA, and China and improved the quality of performance[5]. This strategy is effective for both countries and investors for gaining legitimacy within the financial stability of the countries. This research will help to analyse the strategies of the prominence and government in terms of improving the standard of growth of financial stability. There are several advantages of FDI and foreign investment that help countries to gain maximum profitability and this is essential for countries to resolve disputes.

1.4 Research aim

The aim of this research is to investigate the impact of treaties of investment on the perception of the public of countries of “foreign investment”. This research has focused on the strategies of the government to regain legitimacy in the “foreign investment” of public perception.

1.5 Research objectives

To investigate the impact of “foreign investment” on the economic performance of countries for managing legal law
To find out the disputes of government in foreign investment
To evaluate the strategies of the government to resolve disputes to regain legitimacy and maintain the perception of public as per the government legal regulations and law
To analyse the effect of bilateral treaties on the management of public perception and backlash about “foreign investment”.

1.6 Research questions

What is the impact of “foreign investment” on the standard and growth of a finance of countries for managing legal law of government?
What are the disputes and issues faced by the government and prominent states while developing foreign investment in terms of manging regulation of legal aspects?
How can the government resolve disputes and manage the perception of the public through effective strategies?
What is the impact of bilateral treaties on “foreign investment” and on reducing backlash from the public?

1.7 Research significance

The countries implement effective financial tools to improve growth and financial stability. “Foreign investment” is one of the effective tools for gaining a higher range of financial performance through gaining investors. There are issues and disputes which are faced by governments and states of prominence which can be resolved through implementing “foreign investment” and bilateral treaties that is required for managing legal law [6]. These strategies are supportive for countries to resolve the dispute and lower the backlash of the public regarding international “foreign investment”. This research is significant as this helps the countries to analyse the dispute and follow up on effective strategies for enhancing the performance of the prominences states. It is the responsibility of the government to maintain the impact of “foreign investment” on the perception of the public and through implementing effective tools the backlash of the public can be reduced.

Through improving the strategies and management of relationships with the public this is important for the government to identify and implement effective strategies for lowering the backlash. This is important and significant for investors to identify and apply effective tools and strategies to manage the range of profitability from “foreign direct investment”[7]. This bilateral treaty helps countries to create accurate and beneficial strategies and policies which help companies to maximize profitability from foreign investment as per the requirement of managing legal law. This research has focussed on the effect of foreign investment on the public and local citizen perceptions and this is essential for managing the perception through applying effective tools and strategies.

Chapter 2: Literature Review

2.1 Introduction

“Foreign investment” has a direct impact on enhancing the economic growth of countries through developing relationships with international relationships. This research has focused on the impact of international “foreign investment” on the perception of the public in terms of disputes between the government and prominent states. This chapter of this research has focussed on analysing the importance of “foreign investment” on the development of financial growth of countries according to the management of legal law and regulation. While managing the performance of finance in different countries is through international “foreign investment”. A literature review has discussed the impact of “foreign investment” and the perception of the public of dispute activities of the government.

This is important for the government to identify and implement effective strategies and policies for reducing the perception of the public regarding regaining legitimacy. These strategies are effective for boosting the growth of the economy and competing with competitor countries around the world and this sis beneficial for improving legal aspect and law of the country. There are different benefits of investment in the international field that make the trade and improve the quality of performance. Bilateral treaties are one of the effective tools which are used by different countries such as the UK, USA, and China to make for stability in financial growth. Bilateral treaties provide countries to identify and implement effective and accurate methods, and policies for enhancing the financial growth of the companies.

2.2 Concept of foreign investment

Foreign investment is one of the beneficial tools that is utilised within maximum countries to improve the stability of financial conditions. This is a tool that allows countries to make relationships with internal countries to develop investors. This can be referred to as a strategy that is applied by companies when the companies start a business as a domestic organisation and then develop assets in other countries through developing foreign investment[8]. This is one of the beneficial tools which is implemented by multinational companies to expand the areas and branches of the organisation to gain a higher range of profitability.

There are several advantages of investment in foreign bases such as boosting the performance of the company and increasing the areas of business and customers. One of the major benefits of this foreign investment is associated with increasing the range of job development. This also helps companies to get incentives in taxation as an international investment is effective for reducing the tax rate for companies in different countries. Driving the capital of human development is another facilitating factor of thesis strategy that helps companies to regain their position within the existing market according to legal law. [9]. There are mainly three types of foreign investment such as “equity capital”, “reinvested earnings”, and “intercompany loans” which have different impacts on the development of finance.

Figure 2.1: Types of FDI

(Source: Dacin et al. 2007)

2.3 Benefits of bilateral investment treaties

“Bilateral Investment Treaties (BITs)” can be defined as a tool that is highly involved with developing agreements between particular two countries in terms of creating foreign investment. This agreement is highly beneficial for protecting the agreements from both countries. This helps countries to secure the bond and agreement terms of managing the performance in the future[10]. The main objective to develop BITs is to reduce the risk factors while making an agreement regarding financial investment such as political risk factors. There are different benefits of this stool and one of the major affective factors is this helps countries to develop fair and equal treatment within the agreements in law and legal considerations. There will be no tendency to face inequality and biased treatment of two countries and this helps countries to protect the agreement. The protection of this deal from expropriation is another beneficial factor for the countries and this support enhances the performance.

Figure 2.2: Benefits of BITs

(Source: Sikor and Lund, 2009)

Through developing foreign investment countries gain the ability to lower the rate of cost in terms of transferring goods and materials[11]. This is another effective factor for countries to improve the performance of finance and regain legitimacy from the government. This agreement supports countries to enhance the quality of protection and security of foreign investment to achieve the quality and outcome of regulation and legal law. Developing terms of conditions is for both countries while creating “international foreign investment” is necessary for making the agreement stronger.

There are different examples of BITs that have been developed by particular countries. For example, the USA has created the “USA-Estonia income tax treaty” for managing the agreement between European countries and the USA[12]. In the world, there are around more than 2800 “Bilateral investment treaties” which are effective for managing the performance of countries and gaining maximum competitive advantages. Around 150 countries have been involved with the agreement of BITs for improving the quality of financial development and enlarging the areas of business. These benefits of BITs have made this tool an effective strategy for countries while developing “foreign direct investment” and reducing the cost of transport of goods and material to other countries.

2.4 Strategies of government to resolve disputes

This is important for the government to develop strategies while creating agreements of “foreign investment” with other countries. Through implementing effective strategies the countries gain the ability to enhance the performance of “Foreign Direct Investment ” and one of the important strategies is to create BITs[13]. These “bilateral investment treaties” is directly associated with improving the standard of the agreement. There are some terms and conditions which need to be followed by both countries while developing an agreement on FDI. Furthermore, another important strategy of the government will help the government to reduce the dispute in terms of involving a country in terms of “investment of foreign”. This is important to allow the implementation of accurate strategies which will help countries to regain legitimacy and reduce the perception of the public regarding backlash.

Additionally, another effective strategy is “Investment Promotion Agencies (IPA)” which can be developed by the countries to enhance the performance range in terms of finance[14]. Through applying this strategy, the government of a particular country gains the ability to identify the target country to build an agreement in terms of “foreign investment”. Gaining effective strategies and building investment with accurate countries is directly associated with improving the quality and standard of the performance of the countries. Infrastructure and financial incentives can be gathered by developing suitable choices for investors in the future to improve the performance of financial stability for improving and following legal regulation of government and legal law of parliament. This suitable country to make an agreement is highly associated with improving the stability of the financial growth of the country. By applying these strategies countries gain the ability to build investors for gaining a higher range of profitability. These strategies are supportive of improving the condition of financial stability of the growth of the people through the acceleration of the financial growth.

2.5 Impact of BITs to regain Legitimacy from public

The public has developed backlash regarding the “foreign investment” due to several reasons and disputes of government. This is the major role of the government and province states of countries to implement effective strategies and policies to regain the legitimacy of the public of the countries. This is essential for the government to allow investors to find out effective strategies and tools to reduce the disputes and complaints of the public to buy the performance of the countries through developing FDI of the managing purpose of legal regulation and law of country. There are some effective strategies that are directly involved in enhancing the standard and performance of economic growth of a particular country. One of the effective tools is BITs which is directly involved with developing effective performance and maintaining beneficial bonding with other countries. BITs have a direct impact on regaining the trust and legitimacy of the public in the favour of the government and that is also effective for the countries to make more “foreign investment”.

Figure 2.3: Impact of BITs on FDI

(Source: Sherman and Eck, 2003)

This is directly beneficial for increasing the margin of business and expanding the areas of business. The domestic business gets an allowance to expand the business over other countries within lower trade and taxation. This is effective for reducing the cost of transport and business as there is a lower rate of taxation and expenses. Through developing BITs the government gains more confidentiality and agreement is also based on string terms and conduction[15]. This is directly involved with enhancing the quality of performance in financial stability. BITs are an effective tool that keeps fair and equal performance and gains in this agreement and this is beneficial for both countries while developing “foreign direct investment” for following legal law and policies of government. “Foreign investment” is effective for boosting the financial performance of those countries and increasing the requirements of the job[16]. This benefit is beneficial for making more movement inhuman resources and engagement and this is beneficial for making the country more developed.

2.6 Theoretical framework

Developing “foreign investment” is effective for boosting the condition of financial growth of particular countries. This is important for countries to analyse the situation and outcomes before bonding with other countries in terms of investment. There are some effective theories that have a direct impact to provide guidelines to countries before developing investments with other countries. The major theories are such as “The Gravity Model for FDI” and “Production Cycle Theory” which is beneficial for countries in aspects of managing FDI. The gravity model of FDI is effective for maintaining a balance between two countries that are involved with FDI[17]. This theory is based on Newton’s gravity law where FDI flows between two countries according to the size of the country. The distance between two countries is associated with the flow of FDI and this can be analysed by using this gravity theory.

Figure 2.4: Impact of BITs on FDI

(Source: Talamo, 2007)

On the other hand, another effective theory is the “production cycle theory” which helps countries to enhance their performance standard and profitability margin. There are mainly four stages in this theory introduction, growth, maturity, and decline which are highly involved with managing the performance of financial stability according to legal law. [18]. In the phases of growth and maturity, the performance stays at the peak point and this is an important role of countries to keep these phases longer. Introducing and growing FDI is also important for gaining maximum outcomes and the countries will need to focus on new agreements before decline meant existing ones.

2.7 Challenges faced by the government while developing “Foreign investment”

FDI is effective for improving the standard and quality of financial status of a particular country and this is beneficial for the government to regain legitimacy from the public. Although several issues and challenges faced by the government in terms of developing FDI with other countries legal law and regulation[19]. One of the major challenging factors is managing both foreign and domestic business with equal potential and this causes interference in the business of the domestic area. There is a higher tendency to create a negative impact on domestic and local businesses in particular countries. This negative impact develops backlash among the public and this is one of the major challenging elements for the government. This is important for the government to balance both domestic and foreign business with equal value. Negative influence on the rate of exchange within the country brings negativity to the perception of the public of domestic civilization.

Additionally, challenging factor of government while developing “foreign investment” is associated with managing changes in a political party. This is one of the major risk factors for countries as the changes in political parties in countries modify the deal and agreement. This is important for countries while developing an agreement to analyse and evaluate the impact of politics within a particular country[20]. Expropriation is another issue for the government in terms of maintaining performance and profitability through bonding with other countries in “foreign investment”. The sudden down in economic growth of the country and reduction of GDP is another major issue that lowers the quality of performance.

2.8 Strategies for developing suitable “foreign investment”

Strategies are effective for countries in terms of gaining maximum profitability through applying “foreign investment”. This is one of the major responsibilities of the government to allow the creation of an agency for the government and the agency will be allocated to find out effective strategies for improving the performance of this investment according to legal law. One of the major strategies for the government is to reduce the restrictions in this kind of agreement with other countries[21]. This makes the particular country less attractive to other countries and this higher tendency to lower the value of the trade rate[22]. Open, transparent, and clear conduction within dependency from a particular country is beneficial and attractive in front of other countries in terms of developing investment. Countries will need to make the country easy for other countries to start businesses and run the business efficiently, which is beneficial for countries to increase their value. The government of the countries will need to focus on the accessibility within the country that is directly involved with improving the performance of the economic stability of the country. This easy accessibility and import of material to a country is an advantage for other countries which is a positive factor for developing “foreign investment”

This is recommended to countries make a flexible domestic situation within the market of the country that is directly linked to enhancing the margin of performance. Through applying these strategies countries become more efficient and eligible for making “foreign direct investment” with other countries[23]. The government will need to apply the legal law “Investment Promotion Agency (IPA)” which helps the countries to analyse the condition of countries. This is also recommendable for countries to analyse the situation of other countries and apply theories before developing investment agreements. Flexibility within the domestic business will help the countries to become more attractive and this will be effective for countries to develop agreements with more stable countries in terms of finances[24]. Analysing the political condition of a particular company is recommendable before creating the investment-involved agreement. Political parties have an immense impact on the financial growth of the country. Due to this reason, countries will need to focus on the quality of living and political parties to gain maximum back. Protection of intellectual property acts is another important factor that needs to be maintained by the agencies of government[25]. Within a particular country, this is an essential factor to develop secured and protected intellectual property and the country should have a well-maintained act regarding this.

2.9 Literature gap

“Foreign investment” is directly associated with improving the quality and standard of financial growth of a particular country. This is important for every country to manage its performance through developing suitable investments with deserving countries. This research has highlighted major facts about “foreign investment” though there is some literature gap in every literature review section of the research. The major literature gap in this literature review is analysing the legal law that needs to be maintained by both countries while developing FDI. The countries will need to maintain accurate legal considerations for enhancing the performance and treating both countries equally and fairly. Another literature gap in this research is based on ethical considerations. The countries need to maintain ethical factories while maintaining relationships with other countries during FDI. These are the literature gaps of this research that are associated with analysing the impact of FDI on the perception of the public and the disputes of government on the thoughts of the public of the particular country.

2.10 Conclusion

“Foreign investment” is directly associated with enhancing the quality of performance and understanding the legal factors is important for both countries. While developing legal agreements in terms of investment is important analysing the political status of the particular country is important. This can be concluded that the government has several disputes while making agreements in FDI and this had a direct impact on the perception of the public. This agreement had a direct influence on the domestic business of a particular country and this is recommended to the government to balance both international and domestic business. Through maintaining the agreement by implementing BITs is important for both countries as this is effective for managing the quality of performance and boosting the situation of economic condition.

BITs have a beneficial impact on the performance of countries while creating FDI with other countries as this tool is directly involved with accurate terms and conditions. That is essential for other countries to maintain their performance and gain maximum flexibility through applying effective theories. The major effective theories are as production cycle and gravity theory. These theories are directly linked with improving the economic status of particular countries. The major strategies and recommendations that need to be maintained by countries are such as making the country flexible to start a business and increasing accessibility for importation. This is effective for other countries to start a business in that particular country.

2.11 Conceptual Framework

Chapter 3: Methodology

3.0 Introduction

This project is based on identifying and reviewing as well as investigating the solution and procedures using which the resolution clauses of growing prominence can regain the trust and legitimacy in the view of people. Apart from that, it is also focused to point out the methods that can help in resolving the disputes based on investment as well. ICSID basically helps provide such factors like finding of facts, arbitration or constellation as well for active settlements of these issues regarding investment treaties. As a result, it is obvious to find out as well as figure out the related issues and parameters affecting this scenario of investment and further have to try all possible approaches as well as strategies such that these issues can be avoided and it can regain the trust of the public by serving them properly with several modified procedures as well. All these things have been discussed in this total case study in the further chapters.

3.1 Research Onion

Figure 3.1: Research Onion

(Source: Developed by Saunders et al. 2007)

Research onion, developed and proposed by “Saunders et al. (2007)” is the procedure that describes and elaborates the stages required for successful completion of a research work and the researchers must go through and pass these steps at the time of conducting a research. This method implements a sequence of stages that possess several methods and approaches of data collection, and the mechanisms of such methods can be easily understood along with a clear visualisation as well[26]. For conducting a research successfully and for getting desired results as the output, this method should be maintained properly, and the included steps must be followed accordingly. However, similarly, in this work also, the research onion method has been followed and maintained to obtain a satisfactory result. This method consists of several stages like analysis of data, collection procedures of data, philosophy, approaches, selection and so on that yields a clear and overall idea about the tasks that should be completed as well as covered during the total research work[27].

3.2 Research Philosophies

Research philosophy, in general, refers to the point about which methods should be included and followed for conducting a particular research project. Simply, it is generally an event of gathering, analysing, reviewing and using the data. This method provides useful information and sufficient knowledge about the nature, perspective, insights, and sources of a topic and thus provides an overall view of the topic. Several steps included in research philosophy are realism, interpretivism and positivism as well. Realism method helps in finding and understanding how realistic the concept and the plot is. It determines the idea and conceptual objectives of reality as the mind-set of people[28]. The realism method is generally dependent on several assumptions and predictions of any scientific approach for ideal growth of knowledge. Apart from that, interpretivism is the method that interprets various elements and factors of a study and thus creates a link with human interests. Positivism method works based on the observations leading to the different analyses regarding the statistical field. Here, the proposed topic is analysed using these philosophies of research and the observations are noted.

3.3 Research Approaches

Research approach refers to the planning and procedures that are made of several stages on the basis of broad assumptions of the methods like interpretation, collection and analysis of data as well. Covering and following appropriate approaches of research is one of the major parts for conducting and completion of a work successfully with intended findings. This method facilitates research work by describing various collective methods of data, different analytical stages, selective finding of methods that can be applied in researching a particular topic that can provide the best final outcome as well. However, the inductive method and deductive method are two main approaches to research. The inductive method starts by gathering useful and relevant data that are required and related to the subject of research. This is basically a systematic way that analyses data whether it is qualitative or quantitative, and finds out several objectives by proper reviewing[29]. However, deductive approach points to the method that is associated and related in a typical way with the scientific researches and investigations. In this work, the parameters have to be found out to regain the trust of people, and in this case, these approaches must be used to get a comparative analysis of the total topic. In this point of view mainly, the inductive method has been incorporated in desire with getting suitable findings and valid information as well. Inductive method is selected as several questions and corresponding suitable answers are required for getting the view of this topic. As a result, using this method, the further part of the research has proceeded.

3.4 Research Strategies

Research strategies are a club of sequences of planning as well as actions that generate an idea regarding the thought process of a researcher for conducting tasks with proper justification and validation as well. This method provides the potential of challenging the biases and assumptions of a task and developing several related questions to modify the quality of work. Apart from that, a clear conceptual view can be collected from this method. Different data collections methods are analysed in this portion with proper clarity and thus researchers can select a valid and suitable method for the project[30]. Several standard strategies are survey, case studies, action and archival as well. Surveys can be defined as the set of records from several samples of individuals that can be done and obtained through sample responses for the queries. Case study is a depth query methodology that inquiries about several parameters like families, groups, individuals, organisations and so on. Action can be defined as finding a problem, analysing, and developing some probable solutions and thus implementing those and notice the results. The Archival method is searching and extracting needful records and evidence as well from original studies. In this case, all the methods are implemented over the topic and the aspects and findings are noted.

3.5 Research Choices

The term “research choice” states the procedure and methodology of selecting an individual process for conducting a research task. From research choices, the researcher can get an idea as well as a view of the matter that which method is best fitted and most suitable for that work specifically, and thus choose that method for further proceeding in desire with obtaining good satisfactory outputs. This lies among one of the most used chapters for research. However, a researcher may select any methods among qualitative, quantitative, or mixed methods of research[31]. Qualitative method generally uses observations of participants about the case study resulting in a descriptive, narrative approach or practice as well. However, quantitative methods basically emphasise the measurements and objectives of a research topic along with consisting the analyses of statistical parameters, numerical methods as well as mathematical analysis. In the case of a quantitative approach, data can be collected by modifying the statistical datasets that are already existing previously, or reviewing the questionnaires as well as surveys.

3.6 Time Horizon

Time horizon of a research helps in identifying and calculating the estimated required time for completing a research task. In other words, it can be stated that the time horizon gives us the idea of the time frame that is required for successfully completing the file as per the requirements and considering covering all the methods and chapters and the section as well.

Activities	Week 1	Week 2	Week 3	Week 4	Week 5	Week 6	Week 7	Week 8	Week 9	Week 10
Research area identification
Formulation of the research question
Research strategy development
Research design
Writing the proposal
Literature review
Data extraction and analysis
Conclusion and recommendations
Final submission

Table 4.6: Required time chart for completion the task

(Source: The main instructions)

In the above table, the total time required for successfully completing this specific task is provided. Several chapters and corresponding chapter wise duration of time is given here. From this table, researchers and the participants can get a clarity of the total time table and thus can manage time accordingly, as a result, it can also be stated that it also helps in time management and guides properly[32]. Time frames for different works are pointed out using different colours as per the criteria.

3.7 Techniques and Procedures

3.7.1 Data Collection

Data collection is the main part of all these sections. For initiating research work, the required relevant datasets are highly needed and are the basic requirements for further proceeding with the given task. As a result, collection of useful required data and related information are initiatives for performing the research. It can be easily understood, before starting research about any method or any particular domain, a depth and proper idea and all the related data as well as records are needed to identify several factors, issues, barriers, solutions, optimised ways, findings and so on[33]. There are several data collection procedures among which the main and basic as well as hugely applied methods are “primary source of data collection” and “secondary source of collecting data ”. Apart from that, these methods also consist of several specific sub points.

3.7.1.1 Search Strategy

The main methods of gathering useful relevant records are using primary sources and secondary sources as well. Primary source can be defined as the original and main source of data , in other words, the source as well as data that the researchers make and create themselves[34]. These are fresh and not used or applied by others anywhere. On the other hand, a secondary source can be stated as the collection procedure that is already used by others, not the original as well as fresh resources. In this project, the secondary method for collecting data has been used.

3.7.1.2 Inclusion and Exclusion Criteria

Incorporation and attachments of both inclusion criteria and exclusion criteria helps in improving the significance of result.

3.8 Data Analysis

After collecting data, the main task is analysing those datasets carefully so that any unethical or unwanted as well as irrelevant information cannot be entertained and allowed at the time of experimenting and reviewing.

3.9 Analysis of Capital Resources

A research procedure generally goes through several important phases; capital resource analysis is one of them[35]. In this phase, all the legal and ethical considerations of the task along with the significance and justification as well as utilities of the findings and results are discussed and verified whether the work is meeting all the criteria or not.

3.10 Summary

All the needful related processes and considerations have been covered and discussed briefly in order to obtain a validate finding and result in these phases.

Chapter 4: Analysis and Discussion

4.1 Introduction

This is important for the government of every country to focus on the economic performance of the country. The government develops different strategies which are effective for enhancing the stability of the economic condition of the country. Foreign investment is one of the major strategies that have been applied by a maximum number of countries for improving the performance of the economic sector. This chapter has analysed the findings of this research regarding the impact of “foreign investment” on the economic performance of the country through resolving disputes and regaining legitimacy. These are beneficial for developing perception among the public and developing a strong relationship between government and the public within the country. This chapter has evaluated the findings of this research from a literature review through secondary data collection techniques and this has been discussed in this chapter. Through discussion and analysing the findings, this research has shown that this is important to develop an agreement between two countries while investing in FDI.

4.2 Data findings

4.2.1 “Foreign investment” has an impact on improving financial stability

This has been found that “foreign investment” has a direct impact on managing the stability of the economic system of a country. Due to this reason, a maximum of around 66% of countries have developed this strategy within the country to improve the economic condition of the country. This is important for countries to maintain the investment system with other foreign countries in terms of increasing the profitability of the economy[36]. This can be found from the secondary data collection method of this research that the countries face different disputes while maintaining the “foreign investment” process and this is effective in creating a perception among the public. This is also the responsibility of the government to resolve those disputes and manage the perception of the public to increase the quality of performance.

4.2.2 Challenging factors of FDI

Through analysing the literature review section of this research this can be found that the government needs to implement different strategies to resolve disputes while developing investment policies. This has been found that through mitigating strategies the government gains the ability to manage the perception of the public and gain higher benefits from the investment. FDI is one of the effective tools which are used by a maximum number of countries to improve the economic condition of the country[37]. The disputes regarding “foreign direct investment” from the end of government are effective in creating a perception among the public and this is also the government’s responsibility to resolve those disputes. There are different disputes such as legal and law regulation, political stability, and others that have an impact on the performance of FDI.

This has been found from this secondary data collection method that the impact of FDI is effective in terms of developing the stable economic condition and gaining a higher range of opportunities to improve the performance of the countries. The leading countries of the world have created this policy to create a strong relationship with other stable countries and this has been found from this research that this is essential to enhance performance. Managing and applying strategies while resolving the disputes directly impacts reducing the issue within FDI policies. This can be identified from the literature review section that the major effective strategy for mitigating the challenging factor while developing FDI. The major challenging factors for making FDI are delays in creating FDI from the end of regulations and legal bureaucracy and this is a responsibility to develop effective strategies to reduce this delay. Another effective issue is regarding the demand of local political parties and due to this reason; a higher score of political score is a beneficial factor to develop effective FDI.

This is important for the government to reduce these kinds of disputes while making FDI and this is helpful to control the perception of the public in the country. There are many countries that become more dependent on investment and investor countries which are highly effective for taking over control of the host country[38]. This is important for the government of the specific country to control the emotions of the public and reduce the rate and effect of disputes among the citizens. This higher range of dependency on investor countries may cripple the domestic business and firms which is ultimately unhealthy for the growth of the country this is another reason the government needs to regain legitimacy while creating FDI with other countries[39]. Domestic company’s and brands suffer from tough competition due to international brands’ entrance into the domestic palace of the country. This is another dispute which needs to resolve by applying effective strategies.

4.2.3 Strategies of government to manage FDI

This is essential for the government of any country to improve the condition of the country in terms of political, technological, and legal stability for creating strong FDI. These factors are directly involved with the performance of the country in terms of developing effective investors and improvement in economic stability[40]. The most effective strategy that needs to be followed by the government is to focus on both international investors and domestic firms to keep the balance within the performance of the country. This will help to control the perception of the public and another beneficial tool is bilateral treaties. This is an effective management strategy that helps the government to reduce the backlash of the public and controls the perception to improve performance and quality.

Figure 4.1: FDI flow in country

(Source: Lasbrey et al, 2018)

The political score is an important factor for increasing the quality of the performance of the country in terms of making FDI and due to this reason; the political parties need to be managed with accurate legal factors. The legal bureaucracy needs to be accurate and effective otherwise there will have difficulties in terms of developing investors who are stable countries. These factors are checked before developing and engaging with other countries in terms of FDI[41]. Through managing the performance of technology and legal factor the government will gain more opportunities to build effective FDI which are beneficial for managing the economic stability within the country. The most effective strategy that has been found from the literature review section through the secondary technique of data collection is that reduction of restrictions in legality is another effective factor to allow other countries to start a business in the country. This is beneficial for improving the performance of the domestic place of the country.

4.2.4 Impact of Bilateral treaties

This is the responsibility of both governments of the countries in terms of developing effective FDI the government needs to create bilateral treaties which is a management tool that creates legal documents between the two countries. Through this agreement, the countries can negotiate and create a proof of the investment procedure. This helps the country to create proof of the FDI and this is important to improve the sustainability of the investment. The findings of this research have shown that bilateral treaties have a major purpose to be developed which is developing investment through reducing the risk of political factors[42]. After changing the government also the countries will gain the ability to continue the investment or will gain the return of that particular investment. This will help the countries to enhance the safety and management of FDI. This is recommended to every country develop Bilateral treaties for increasing the safety of the FDI and managing the perception of the public. This is a writing agreement that represents the negotiation and details of the FDI whisk created between two countries and this will help the countries to keep safe and reduce risk factors. This is essential to get a signature on that agreement paper for managing the security of FDI by two countries and this is beneficial to both countries.

4.3 Data analysis

4.3.1 “Foreign investment” has an impact on the economic performance of countries

“Foreign direct investment” is one of the major strategies of governments of countries to enhance the stability of economic conditions and this will help the country to create more opportunities to create jobs for youth. That is one of the major factors for improving the quality of the country by increasing its economic status. This helps the country grow and become more stable among other countries. This is one of the major reasons around 66% of countries in the world of products are involved with FDI and this is helping them to increase their economic stability. FDI is an effective strategy that is beneficial for increasing the asset of the country and also beneficial for increasing the margin of productivity in business[43]. These are the major factors to increase the range of profitability of the country and this helps the country to grow further. By enhancing this performance the country gains ability to improve its economic performance of that country.

This policy of FDI is beneficial for increasing the level of manufacturers and gaining a higher range of profitability within the country. Due to a higher range of productivity, the country needs to have a higher range of employment. Through developing FDI the countries gain the ability to create more job opportunities and this is effective in reducing the rate of unemployment. By managing the unemployment the country gains a higher range of productivity and this is beneficial for improving the stability of the economic sector. By boosting employment the country gains ability to increase the level of production and increase the rate of purchasing and sales. This is also a part of increasing the economic stability of the country which is effective for managing the performance of FDI.

There are different factors in FDI which are also beneficial for the growth of the country as this is beneficial for the transfer of newly developed technologies to other countries and that is effective for improving the economic growth of the country. Through managing the performance of the FDI the country gains the ability to improve the quality of performance through transferring human resources which is effective for boosting the performance of the country. This investment is highly beneficial for improving human capitalism within a particular country and this enhances the development of the country in terms of economy[44]. By improving the human resources within the country the government gains more opportunities to enhance the performance of the country. By improving these factors the country gains the ability to attract other countries to create more FDI[45]. The country gains more ability to transfer technology to other countries which helps them to grow and become more attractive to other countries. These factors are essential for improving the economic condition of the country and enhancing its performance of the country.

FDI is also beneficial for increasing the rate of export and import within the country and this is beneficial for increasing the productivity of the country. The investor boosts the importance and export of manufactured products of the country and this is beneficial for the performance of the economy of the country[46]. The country gains the ability to increase the exchange crates of the country and this is another factor for improving the quality of performance and improving the service from the end of the country. The country becomes a more stable competitor in the market of global which is effective for developing an effective reputation within the global market. This will help the country to grab the attention of other countries and this is beneficial for improving the performance of FDI. Capital flow is a beneficial factor that becomes more string and stable which is effective for improving the performance of the country[47]. Improved flow of capital is also effective for improving the performance of domestic business of the country and gaining a higher range of profitability through managing the performance of the national firm. This flow of capital will help this country to develop more strong relationships with international companies and this will help the country to grow further.

Increased technology, climate notification, and increased rate of employees are the major elements of FDI which act as advantages of this strategy of the government in terms of improving the performance of the country. The country will need to focus on the performance of the country by managing the performance of the companies which are domestic and this will enhance the performance of the company[48]. The countries around 66% of around the world have joined this strategy to improve the performance of the country in terms of economy. The major impact of FDI is directly linked to increasing the transport of goods to other countries and this is beneficial for increasing the rate of productivity and profitability.

4.3.2 Government faces disputes in foreign investment

While developing FDI and managing the relationship with investors the government faced different issues and this has a direct impact on creating issues within the perception of the public. The major dispute is regarding lower focus on domestic business in the country and due to this reason the public develops backlashes regarding FDI[49]. This is the responsibility of go0veernemnet of every country to manage and balance both international and national relationships for managing the perception of the public within the domestic business. This will help the country to grow further and this is directly beneficial for the entire growth of the country from rural to urban. Domestic businesses lose a large number of customers the local customers lose interest to purchase products from local brands and this is effective for the growth of the domestic firm. After getting an international brand the customer gains interest to buy the product from an international brand and this is another backlash for the domestic performance. There has another high risk of privacy and security of the agreement between two countries as after changing the power of political parties and government the countries face different issues regarding FDI.

Along with advantages, there are different issues that are faced by governments of countries while making FDI and this is important to identify the backlashes to resolve the disputes. The countries face challenges regarding negative rate of exchange and thus the impact on the perception and acceptability of public and due to this reason the government needs to manage the performance of the FDI and gain trust from the public[50]. Another factor of FDI has associated with higher coasting and this dispute faced by the government which has a direct impact on the economic performance of the country. There has a higher investment of finance in terms of export and import product within a country while managing FDI and this is another major dispute of this policy. Along with this countries face issues about more investment of money on machinery and managing intellectual properties of the countries. This is important to be managed by the government of each country to gain higher and maximum profitability of the FDI. The constant movement of the political party in a country has an impact on investment and due to this reason; there have major risks due to this political instability.

Expropriation is another challenging factor that is highly involved with developing FDI and managing investment with other countries. This is responsibility of the government to create FDI through managing these disputes to manage the perception of citizens of the country. This is important for the governments which are associated with creating FDI with other countries and improving the performance of the country in terms of economy. This is important for countries to have control over property and assets as there has a higher risk factor of political changes in the country[51]. Due to this reason, there can develop expropriation within the particular country. The third developed countries have a higher tendency to create poor performance within the FDI and that will need to be managed by improving the negotiation and managing tough competition. Modern-day colonialism is another factor in FDI for managing the economic growth of a particular country and these are the major elements that create disputes for the government of the country[52]. This is the responsibility of the government to include agencies within this policy to create effective strategies for solving the issues and disputes. Through this identification of issues, the government understands the most effective strategies for improving the economic performance of the country.

4.3.3 Government has developed strategies to resolve disputes to regain legitimacy and maintain the perception of the public

This is important government to resolve the disputes while creating and managing FDI as this is important for modifying the perception of the public. This is an essential factor for regaining legitimacy for the government of any country to manage the satisfaction of citizens as this is important from the aspect of politics[53]. The government will need to identify the disputes initially for implementing the most effective strategies within the processes of FDI and this is beneficial for improving the economic stability of the country. One of the important strategies for the government is to open up the accessibility within the country that will allow other countries to start a business in that country. This is important for the government to invest in agencies that are highly associated with managing the risk factor through analysis earlier and this is important for governments to get involved with an investment with other countries. This is essential for countries to analyse the stability of other countries in terms of economy, political and other external factors in the country before getting involved in investment.

Figure 4.2: Home and host country in FDI

(Source: Okegbe et al, 2019)

Reducing the restrictions in the country is another effective strategy for a country for attracting other countries and this is beneficial for managing the FDI policies. Improving the stability of political score is important and essential to attract a stable country to build FDI and enhance the development of the host country. The country will need to focus on the legal and law regulations and making them efficient is another important strategy for government to reduce the rate of disputes while creating “foreign direct investment” and this will help the country to reduce backlashes of the public. Another important factor is to create strong agreement while coming into an investment with other countries that will reduce the risk factor and improve the quality of financial performance. The political movements within a country are an essential factor to focus on by the government of the country while developing the performance of the financial stability. Proper signature from both countries is important for developing strong proof in terms of changing political parties and governments will not hamper the contract and this is safe for both countries in terms of developing FDI.

The country will need to apply an easy-going business system which is beneficial for increasing the traffic of business development and this is beneficial for improving the stability of the economy of the country. The government will need to improve laws of data protection, intellectual; protection, and other rights of protection for shoeing stable country status to attract other international countries to connect with that country. This will help the countries to grow further by developing strong investors which are also responsible for managing the stability of the economy. The government will need to develop “An investment Promotion Agency (IPA)” for managing the performance of the country and this agency is responsible for analysing the condition of the country before involving an investment.

The government will focus on both domestic business and international to reduce the backlashes of the public as due to internal business, domestic business face a major range of loss. Accessibility of the transport system is another important strategy of government that need to improve for managing the important system within the country[54]. This is beneficial for a country to bring other stable international companies to its own country. This higher accessibility and Availability of advanced technology is another essential factor for a country to enhance its standard of the country. This is important for every country to develop secure and protected technologies and internet connections all over the country to make the place suitable to start a business. Flexibility within the market is a beneficial factor for an international company to come over to that country and start operating and due to this reason, this is essential for every government of a country to focus on its flexibility of the country. These factors need to be improved within a country for getting a stable country to deal with in terms of managing FDI which is beneficial for improving the economic condition of the country.

4.3.4 Bilateral treaties have an effect on the management of public perception and backlash about “foreign investment”

This is the important role of the government to manage the perception of the public regarding FDI and regain legitimacy from the citizen as this is important for the government. In an aspect of a political win, this is essential for the government to manage the satisfaction of the public and also manage the economic growth of the country through involvement with FDI. There are different strategies of government that need to be managed and implemented within the country to reduce backlashes of citizens and improve ensure the performance of the country[55]. This is essential to implement the accurate process of management for managing the performance of FDI between two countries and bilateral treaties are one of the effective strategies that allow the government of both countries to develop strong and secure agreements regarding investment. Through developing this legal agreement the countries gain safety and protection and that will enhance the proof of this contract regarding “Foreign direct investment”.

Through developing Bilateral Investment Treaties (BITs) the country is becoming more liable and attractive to other countries in terms of developing FDI. These BITs are highly associated with developing international agreements among countries regarding the investment of foreign investors. The government will need to focus on thesis agreement for increasing the security and performance range of the countries in terms of economy. By managing the economic condition the country can become more developed in every part of the country. This will help the government to develop highly secured agreements with other countries and during extropriatio0n there will have no impact on this agreement. This is beneficial or changing the perception of the public and gain higher legitimacy to the public of the country. The political party of a local place of countries has a direct impact on the performance of the domestic and international business and through managing the legal factors within the country the government will gain the accurate performance. The economic growth will enhance the capability of the country to build more relationships with other stable countries and this is beneficial for the growth of economic status.

Figure 4.3: “Bilateral investment treaties (“BITs”)”

(Source: Lasbrey et al, 2018)

“Bilateral investment treaties (“BITs”)” can be referred to as international agreements between two countries on the terms of “private foreign investment” by nationals of one country with different countries. This is effective for “foreign direct investment” in the host country by developing higher protection of standards of treatment for investors. Expropriation is one of the effective advantages which is beneficial for reducing the unfair treatment of investors[56]. This is effective for lowering treatment which is unfair and protecting the country from discrimination and removing a lack of security. Through improving the performance of this agreement the country becomes more capable to attract other countries which are even more developed and stable and through building with these countries the growth will be improved. This is an essential factor for government to manage the economic performance along with managing the sustainability as this is also an effective for regaining the legality as this is important for managing the perception of the public. The public is major important factor for any political party as they have a higher lower to keep the political party in power and due to this reason the government will need to focus on the security and protection of intellectual property protection.

Protection acts are or securing the proof of this agreement and this will enhance the capability of the country to manage satisfaction of public and this agreement will be associated with different essential factors such as duration, timing, financial profit, and others. Through developing this agreement the countries will gain the ability to fight back if something went wrong and the political parties have a higher tendency to create issues and due to this reason managing political parties with accurate and effective proof is important for managing protection and security[57]. The public will modify the perception of the activities of the government and this is beneficial for the country to get involved with multiple “foreign investments”. Though inducing agencies government will regain the ability to modify the perception and gain legitimacy from the public and this is beneficial for managing the entire performance of the country.

4.4 Summary

This has been discussed in this chapter that through applying BITs the government will gain a higher range of ability to change the perception of the public. This is beneficial for the economic performance of the country and becomes more attractive to other countries in terms of the development of FDI.

Chapter 5: Conclusion and recommendation

5.1 Conclusion

Economic investment is an effective strategy that is applied by the maximum number of countries in the world to enhance the economic performance of the countries. “Foreign investment” is highly effective for the management of the economic growth of different countries through developing a “foreign investment” policy of legal law. It can be concluded that countries face different issues and disputes from the government regarding investment plans through developing foreign investment policies. This government dispute has a direct impact on the treaties of public perception regarding foreign investment. This governmental dispute and legitimacy in international policies regarding investment have an impact on developing a backlash of public perception and this is important for the government to implement strategies to overcome this perception of the public. This research has used a secondary method for collecting information and a qualitative method for analysing the data for finding the impact of effective strategies to reduce the lead etc and maintaining legal policies in terms of foreign investment. This research has focused on the impact of bilateral treaties on the management of the perception of the public about the “foreign investment” and this is beneficial for reducing backlashes among the public perception which is effective for the government to maintain legitimacy.

5.2 Objective Linking

Linking with objective 1: “Foreign investment” has a direct impact on the management of financial growth of the countries and due to this reason the maximum number of countries have implemented foreign investment policy with legal law enhance financial performance. The literature review and the finding section of this research have explained the impact of “foreign investment” on the performance of the economic status of the countries that are directly linked with the objective of this study. This study has found that 66% of countries have implemented the strategy of “foreign investment” in terms of improving the condition of the financial status of the countries[58]. These policies of “financial investment” are involved with developing a strong relationship of different countries in terms of developing an investment plan of legal laws to in the opportunity for countries to grow. The product range can be increased through developing FDI within an organization and this is beneficial for the profitability margin of the country through managing the “foreign investment” the country gains more opportunities to increase the employment rate of the country[59]. This is effective for boosting the employment rate and this is effective for enhancing productivity margin and selling rate which are directly involved with the economic growth of the country.

Figure 5.1: Impact of FDI on economic development

(Source: Sabir et al., 2019)

Linking with objective 2:

The government of different countries faces different issues in terms of developing foreign investment policy as this is directly involved with creating disputes. One of the major objectives of the study is to find out the dispute between the government while developing FDI and managing relationships between different foreign countries in terms of business and import-export. The dispute of the government involved creating the perception of the public and the government needs to regain legitimacy in public in legal law. One of the major disputes of the government is to manage a domestic business within the market of the country while allowing foreign companies in the market. This is one of the major factors that create a public backlash and it is the responsibility of a government to manage both International and national business to create a balance. Another dispute of the government is to manage the privacy app and security by developing an accurate agreement with foreign countries to reduce the risk factors. Changing parties in the political sector is another dispute that can arise in the development of FDI and this is directly involved with public perception of the public. Expropriation is the measure dispute of the government that is involved with the FDI development and management of countries regarding investment. This is one of the major responsibilities of the country’s government to manage FDI by reducing disputes and managing the perception of the public within the country.

Linking with objective 3:

This is important for the government to identify the disputes and challenging factors in terms of starting a “foreign direct investment” within the countries to manage the perception of the public. One of the major strategies of the government is to increase the openness of the market which will allow the companies to start a business in the market and uses essential to enhance the economic performance of the country[60]. Another major strategy of the Government is implementing an “Investment Promotion Agency” (IPA) for improving the performance of the country by analysing the economic condition of other foreign countries before getting into an agreement on “foreign investment”. The findings of the chapter have highlighted the strategies of the government to improve the quality of performance and reduce disputes that are linked with the third objective of the study. Flexibility and lower restriction within the market of the country and the legal laws are higher effective strategies for enhancing the capability of a market to allow other International and Domestic businesses[61]. Along with this, the government will need to focus on legal law and regulation while developing agreements with foreign countries in terms of a financial investment as this is beneficial to reduce the risk factor of agreement.

Figure 5.2: Strategies of government to reduce FDI disputes

(Source: VO et al., 2021)

Linking with objective 4:

Bilateral treaties have a direct impact on the management of the perception of the public and backlash in terms of enhancing foreign investment and reducing government disputes. This is important for the government to reduce the clashes and perception of the public regarding foreign investment to regain legitimacy and this is essential for the political purpose of the government[62]. This is important to improve financial stability to implement “Bilateral Investment Treaties (BITs)” the country becomes more liable and attractive to other countries in FDI. BITs are effective for managing security and reducing risk factors in the agreement of countries while developing foreign investment policies[63]. The findings section of this study has highlighted the impact of BITs on the improvement of financial stability of the country and legal regulations and law that is directly linked with the fourth objective of the study.

Figure 5.3: Impact of BITs

(Source: Gyöngyösi et al., 2022)

5.3 Recommendations

Reducing complications and restrictions in business is effective for enhancing the reputation and openness of the country in terms of starting a business for foreign organizations. This is recommendable for the government of a country to implement effective legal law and regulation in terms of starting a business by reducing the restrictions to allow foreign business companies to start their operation in the country which is essential for the financial development of the country[64]. The countries will need to reduce the complications while starting a business and this is effective for the country to develop a valuable reputation in front of other foreign countries and this enhances their interest to create foreign direct investment with that specific country. This is beneficial for the financial development of the countries and increases profitability margin.
Developing policies for domestic business is important for the domestic business which is small compared to large international organizations and the policies and programs of the government will support the small domestic business to run equally and their operation within the country. This is recommendable for managing the perception of the public of the country in terms of gaining legitimacy in the foreign investment policy of the government[65]. The government will need to develop loans and banking liquidity for enhancing the liquidity amount within the market for small business organizations and these programs will help them financially to maintain their business. This is important for the government to balance both international and domestic business organizations within the market of the country to manage the perception and regain the legitimacy of the public in terms of political aspects.
Managing corporate tax is another effective factor for improving the financial stability of the country through the interest of foreign companies to start a business in the country. This is important for the government to decide and select accurate legal laws and regulations in terms of foreign countries and domestic businesses for enhancing their interest to run the business in the future[66]. The government will gain profitability by setting 30% profit for international business organizations and 19% for domestic business companies. This is one of the major recommendations for the government to set corporate tax for companies to run business accurately and manage profitability margin and value of the country and this is directly involved with hens in their interest of business in the future.
Management political stability is another important factor for the government while enhancing the value and reputation of the country that is directly involved with the foreign investment sector. Political management is also important for management in the perception of the public regarding foreign investment and again legitimacy of the public that is important for the political aspect of a government. The political stability index needs to be kept in standard out of 100 as this attracts foreign countries and companies to develop investment agreements with that particular country. Along with these political stability is also beneficial for running and operating international and national businesses within the country and this is helpful for the economic growth of the country.
Analysing teams is effective for the government to analyse the economic and political stability of foreign countries before developing an agreement. The government needs to implement an agency and analytical team to analyse the returning investment policy which will gain more profitability for the country’s development[67]. This will help the government to regain legitimacy and mental perception of the government regarding foreign investment policies and that is important for the government’s economic development. Investing in the management of regulation and legal law while developing agreements with other foreign countries is effective for gaining more returns and hence the economic stability of the country. Management of the political stability of the country is a recommended act of the government to enhance the reputation and open for foreign countries to start a business in the market. This team and agencies will help the government to maintain political stability and regain the growth of the economy and profitability margin.

5.4 Research Limitations

This research has focused on the strategies of the government in terms of reducing disputes regarding foreign investment and managing the perception of the public. The agency is to be implemented by the government to analyse the market condition and financial stability of other foreign countries before and develop in an agreement on financial investment that has not mentioned the accurate role and responsibilities of the agency in foreign investment that is one of the major limitations of this research. The government in need to develop an agreement with other foreign countries and the political stability of the country to manage legitimacy through modifying the perception of the public and the accurate legal laws and regulation before developing an agreement has not been mentioned in this study and this is another limitation of this research.

5.5 Future Scope

This study has an impact on a future study regarding the impact of foreign investment on the financial stability of a country and this research will help the future researcher to further research on foreign direct investment. The disputes and challenging factors that can be faced by the government while developing foreign investment and the impact of agencies on reducing the issues of government to maintain legitimacy and perception of the public. This study will help to enhance the knowledge regarding legal laws and regulations and affordable shopping agreements with foreign countries in terms of foreign investment. This research study will provide information regarding the strategies that need to be applied by the government to balance both domestic and international business within the country and allow different organizations to start a business in the country by reducing the restriction.

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Websites

imf.org, 2022 FDI available at: https://www.imf.org/external/pubs/ft/fandd/2001/06/loungani.htm#:~:text=FDI%20can%20also%20promote%20competition,revenues%20in%20the%20host%20country. [Accessed on 20.07.2022]

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