Study Of Foreign Nationalization Compensation Legal Issues

The tide of economic globalization sweeps across all the countries in the world Large scales of nationalization are not likely to occur. However, as a kind of political risk, it is still necessary to study the relevant legal problems of nationalization. The thesis aims at making our countries more competitive, and protecting our economic sovereignty as well as investors' benefits. Through analyzing a series of legal problems, such as the concept of nationalization, the resemblances and differences between expropriation and nationalization, the legal requirements of it, how to prevent and avoid nationalization risk, as well as how to resolve the aroused disputes regarding nationalization, the stand of our country and what measures we should take. The thesis is composed of five parts.Part One is the concept of nationalization and history development In this section, what nationalization is has been clearly stated, as well as the resemblances and differences between nationalization and expropriation. All these have laid a solid theory foundation for the legal requirements.Part Two is of the comments on legal requirements and compensation standards. Though legality of nationalization is globally accepted, nationalization can not be carried out without any restriction. The requirements are: nationalization must be executed for public safety and interests, on a basis of non-discrimination, in accordance with legal procedure, as well as must be compensated Amongst the four factors, to compensate the nationalized property has been agreed by most of the countries, but in what degree the property should be compensated is still a question. Three standards have been given: Hull Rule, Non-compensation Principle, and Appropriate Compensation. Hull Rule is held by developed countries, while Appropriate Compensation by developing countries. In this section, the author analyzes the background, main contents, and advocating countries.Part Three is about how to prevent and avoid the nationalization risks, as well as how to settle the aroused disputes. The prevention of such risks lies in three aspects: parent country, host country and investor. In addition, the author brings forward that the disputes could be settled in three ways, that is, political method,...