International Business Law - Foreign Direct Investments rules in Term Paper

International Business Law - Foreign Direct Investments rules in Morocco and Democratic Republic of Congo - Term Paper Example here the economies of the host country may attract foreign investment in the lagging areas of the economy and on the same time protect the local investor. In the following paragraphs we will critically examine these characteristic of Foreign Direct Investment keeping in view the rules for such investment in Morocco and Democratic Republic of Congo. Morocco is an ethnically and culturally diverse society. Operating a free market economy, where in spite of the current Arab Spring robust growth has been seen and the prospects of the respective economy are very good for the coming years. Increase in the domestic demand and progress in the agricultural and non-agricultural sectors are the major attractions for Foreign Direct Investment (FDI). There are various regulations passed by the Moroccan Government in order to boost the foreign investment which will be discussed below: The Moroccan Government had adopted a new constitution in order to stable the political situation of the country. This step was taken to address the social demands of the region which tend to swing due to the Arab Spring. This change in the policy had bore fruitful results and attracted the investors of neighboring European countries like France and Spain. The government allowed the Prime Minister of the country to adopt investor friendly policy while keeping in view the civil rights of the local population. This created an environment which is suitable for an investor, and on the other hand addressed various social and political claims (Doing Business in Morocco, 2012). Due to various social disparities and inequalities and also due the absence of the effective labor market the rate of unemployment among the fresh graduates had increased. The government had announced and implemented various reforms to deal with this challenge, which includes the introduction of the private sector investment in the sectors of training, education, human capital development and career planning/counseling. The