Foreign direct investment and the need for a more stable legal context

Abstract

Due to the advanced globalization process that we have nowadays, concepts such as foreign direct investment and stabilization mechanisms have become more popular and used in the
international field, in which those concepts has become the rule rather than the exception.
Therefore, for both State’s and investment companies, its has become necessary to seek for a win – win relationship, able to conciliate the State’s need to promote foreign investment in
order to peruse a further development, and the protection of the foreigners’ interest to invest in a stable and profitable environment, appealing for that aim to the different stabilization mechanisms.
The present paper was developed in order to get a deeper understanding about the foreign direct investment and the stabilization mechanisms used to increase the foreign capital inflow
at a national and international level. Mechanisms that intent to reduce the political instability that is often present in the hosts States, and that in the case of Latin America, and particularly in Colombia case, is more visible.