ABSTRACT
Introduction Governments often take a short-sighted, opportunistic approach to adopting policies and laws governing foreign investment. They tend to want their investment climates to be sufficiently appealing to lure prospective investors into their countries, but not so appealing that having foreign investment would be disadvantageous in the long term by virtue of putting too much pressure on local competitors. The competitive global economy requires that governments roll out the red carpet. However, investment landscapes can and do change quickly, often depending on a country’s balance of payments, a change in government, or the outbreak of war, thus forcing foreign investors to operate in dramatically altered environments after having become established.
