ABSTRACT
Most governments welcome foreign investments, but most also want to regulate them out of fear of losing their national controls over the behaviors of the foreign companies who may go beyond the limits of pure business and can affect the sovereignty of the nations. Convertibility of local currency into foreign exchange occurs for the import of capital goods for recurrent inputs needed by the enterprise and for the remittance of dividends, royalties, and other fees out of the country. Most governments are trying to reduce their fiscal deficits as an inducement for foreign investors to show the determinations of the government to control inflation. The host governments can also affect the nature of the technology to be used as an attempt to restrict the unemployment-generating production techniques. In several developing countries, Europeans and North Americans intervened militarily over many decades to assert property rights of their multinational companies.
