investment companies
Investment Companies
*Primarily, the RA No.2629 also called the Investment Company Act which took effect on upon its approval on June 18, 1960 had been the foundation of the investment industry.
*Investment Company Act (RA No.2629)
*Agreement on Trade Related Investment Measures (TRIMs)
- These are rules that apply to the domestic regulations a country applies to foreign investors, often as a part of industrial policy. The Agreement was agreed upon by all members of World Trade Organization. This was concluded in 1994 and came into force in 1995. (The WTO wasn’t established at that time, it was its predecessor, the GATT (General Agreement on Trade and Tariffs) , the WTO came about in 1994-1995) TRIMs are rules that restrict preference of domestic firms and thereby enable international firms to operate more easily within foreign markets.
Trade-Related Investment Measures
In the late 1980s, there was a significant increase in foreign direct investment throughout the world. However, some of the countries receiving foreign investment imposed numerous restrictions on that investment designed to protect and foster domestic industries, and to prevent the outflow of foreign exchange reserves. Examples of these restrictions include local content requirements (which require that locally-produced goods be purchased or used), manufacturing requirements (which require the domestic manufacturing of certain components), trade balancing requirements, domestic sales requirements, technology transfer requirements, export performance requirements (which require the export of a specified percentage of production volume), local equity restrictions, foreign exchange restrictions, remittance restrictions, licensing requirements, and employment restrictions. These measures can also be used in connection with fiscal incentives as opposed to requirement. Some of these investment measures distort trade in violation of GATT Article III and XI, and are therefore prohibited. Until the
*Primarily, the RA No.2629 also called the Investment Company Act which took effect on upon its approval on June 18, 1960 had been the foundation of the investment industry.
*Investment Company Act (RA No.2629)
*Agreement on Trade Related Investment Measures (TRIMs)
- These are rules that apply to the domestic regulations a country applies to foreign investors, often as a part of industrial policy. The Agreement was agreed upon by all members of World Trade Organization. This was concluded in 1994 and came into force in 1995. (The WTO wasn’t established at that time, it was its predecessor, the GATT (General Agreement on Trade and Tariffs) , the WTO came about in 1994-1995) TRIMs are rules that restrict preference of domestic firms and thereby enable international firms to operate more easily within foreign markets.
Trade-Related Investment Measures
In the late 1980s, there was a significant increase in foreign direct investment throughout the world. However, some of the countries receiving foreign investment imposed numerous restrictions on that investment designed to protect and foster domestic industries, and to prevent the outflow of foreign exchange reserves. Examples of these restrictions include local content requirements (which require that locally-produced goods be purchased or used), manufacturing requirements (which require the domestic manufacturing of certain components), trade balancing requirements, domestic sales requirements, technology transfer requirements, export performance requirements (which require the export of a specified percentage of production volume), local equity restrictions, foreign exchange restrictions, remittance restrictions, licensing requirements, and employment restrictions. These measures can also be used in connection with fiscal incentives as opposed to requirement. Some of these investment measures distort trade in violation of GATT Article III and XI, and are therefore prohibited. Until the