国际投资法试题库及答案.doc

EXERCISES & ANSWERS FOR INTERNATIONAL INVESTMENT LAW国际投资法习题与答案1. Foreign Investment is defined as （ ）A. A transfer of funds from one state to another state in return for a direct or indirect participation in the earnings of that enterprise.B. A transfer of materials from one state to another state in return for a direct or indirect participation in the earnings of that enterprise.C. The transfer of tangible assets from one state into another for the purpose of use in that state to generate wealth under the total or partial control of the assets.D. A transfer of funds or materials from one state to another state in return for a direct or indirect participation in the earnings of that enterprise.2. Foreign Investment is commonly categorized into ( )A. Open investment and direct investment B. Direct investment and indirect investmentC. Open investment and tangible investment D. Funds investment and materials investment3. The primary international investment is ( )A. Direct investment B. Indirect investment C. Funds investment D. Material investment 4. Vertical Foreign Direct Investment takes the following two forms ( )A. Vertical FDI and Horizontal FDIB. Backward FDI and forward FDIC. Backward vertical FDI and forward vertical FDID. Backward horizontal FDI and forward horizontal FDI5. Post Second World War period can be further divided into the following three phases: A. Colonial Period, Reopening up to Foreign Investment and Attracting Foreign Investment around the worldB. Colonial Period, Wave of Nationalization of Foreign Investment and Attracting Foreign Investment around the worldC. Wave of Nationalization of Foreign Investment, Reopening up to Foreign Investment and Attracting Foreign Investment around the worldD. Colonial Period, Wave of Nationalization of Foreign Investment and Reopening up to Foreign Investment6. Which of the following belong/s to national treatment(NT) in the field of foreign investment?A. international trade should be equal to domestic trade.B. operation of foreign enterprise and domestic enterprise in host state is similar with each other.C. provides non-discriminatory treatment between foreign and domestic enterprise.D. belongs to legal protection of foreign investment7. which of the following is/are not true according to laws and regulations concerning foreign investment in China?A. An equity joint venture must take the form of a limited liability company.B. An equity joint venture shall not include individual investors.C. A contractual joint venture is referred to as a cooperative joint venture.D. compared with equity joint ventures, contractual joint ventures offer greater flexibility in structure and investment because the terms, conditions, contributions and profit sharing can be contractually agreed between the parties.8.The first modern bilateral investment treaty entered into in 1959 was between _ and _.A. Germany, Pakistan B. America, China C. Germany, America D. American, France9.Which issue is usually not contained in a BIT?A. Treatment of investments B. Free transfer or repatriation C. Subrogation D. The economic condition of each country10.What is the distinctive feature of many BITs ?A. the definition which defines the meaning of investment, investor, etc.B. they allow for an alternative dispute resolution mechanism.C. they stipulate the treatment of investorsD. they have the contents of national treatment, most favored nation treatment and minimum international treatment11. Which one is not a member of the World Bank Group?A. IFC B. MIGAC. IMF D. IBRD12. Which risk that MIGA guarantee does not cover?A. war B. bankruptcy C. currency transfer D. breach of contract13. Henry is from X country. He went to Z country and founded Red Company by himself. Green company has its principle place of business in Y country and also made an investment in Z country. Suppose that X, Y, Z countries are all contracting members of ICSID, then who can possibly submit the investment dispute with Z to the ICSID? A. Henry B. Red Company C. Green D. all of above14. Which of the following measures is not prohibited by the TRIMs Agreement?A. purchase or use of products of domestic origin only,B. restriction on importation of products used in production,C. mandate exportation of products,D. restriction on currency transfer.15. Which of the following companies is the insurer under Chinese overseas investment insurance system? _A Overseas Private Investment CorporationB China Export& Credit Insurance CompanyC Peoples Insurance Corporation of China D Ministry of Commerce of China16. According to the provisions of Washington Convention, which of the following investment disputes can be submitted to the arbitration procedure of ICSID? _A disputes between the host contracting country and the home contracting countryB disputes between ICSID and a contracting countryC disputes between the national of a contracting country and the host contracting countryD disputes between foreign and domestic investors17. According to the foreign investment laws of most countries, foreign investors are usually not allowed to invest in _.A national defense industryB agricultureC international tradeD manufacture industry18. What are the main encouragement measures given to the foreign investors by the host countries? _.A preferential tax treatmentB investment insuranceC financial supportD diplomatic immunities19. Convention on the Settlement of Investment Disputes between States and Nationals of Other States is often referred to as_.A New York Convention B Washington ConventionC Warsaw ConventionD Seoul Convention20. Which of the following are usually considered as Trade-Related Investment Measures (TRIMs)? _.A requirement of purchase by an enterprise of products of domestic originB use of imported products of an enterprise limited to an amount related to the value of its exportsC limitation on the percentage of shares of the foreign investors in a joint-ventureD limitation on the type of foreign investment21. In accordance with Chinese law, the investment of a foreign investor in a joint venture could be in the form of_.A cashB intellectual propertyC equipmentD technology22. The proportion of the investment contributed by the foreign joint venturer(s) shall generally not be less than _of the registered capital of a joint venture. A 50%B 25% C 75%D 30%23. What are the usual methods to settle investment disputes? _A arbitrationB litigationC conciliationD negotiation24. What kinds of risks are covered under the MIGA investment insurance system? _A inconvertibilityB expropriationC war riskD breach of contract by the host country25. What is the concept of foreign investment law? 26. What are the characteristics of foreign investment laws and policies in China?27. Whats the first piece of law concerning foreign investment in China? 28. Are there any advantages enjoyed by wholly foreign-owned enterprises?29. Describe the features of a branch office.30. Give the definition of both equity joint venture and contractual joint venture as foreign investment in China.31.What is nationalization?32.Describe the definition of Joint Venture.33.What is the risk of inconvertibility?34.What is BIT?35. Outline and discuss the method of the encouragement and control of Overseas Investment.36. Briefly outline the risks for the overseas investment.37. What kinds of risk does Political risk cover?38. What are the essential factors in an overseas investment insurance system? 39. Briefly describe OPIC insurance programs.40Explain eligible investments of OPIC.41. Describe the main features of bilateral investment treaty.42.Outline and discuss the method of the encouragement and control of Overseas Investment.43. Describe the characteristics of the main contents of Chinese-foreign bilateral investment treaty. 44. What advantages that MIGA has in its business comparing to state own overseas investment guarantee agencies?45. Please explain the jurisdiction of ICSID.46. MIGA has some advantages comparing to state own investment guarantee agencies. Answer:1 D 2 B 3 A 4C 5C 6 B，C， D 7. B 8 A 9D 10.B 11.C 12. B 13. D 14. D 15 B 16 C 17 A 18 A, B, C 19 B 20 A, B 21 A, B, C,D22 B 23 A, B, C, D 24 A, B,C,D25. Foreign investment law is the body of rules and norms that regulates foreign private direct investment relations.26. a. Insisting equality and mutual benefit principle, guaranteeing rights and interests of both sides.b. Combining encouragement and restrictions, focusing on encouragement and protection.c. Referring to prevailing international usages, fulfilling treaty obligations.27. the Law on Sino-foreign Equity Joint Venture.28. wholly foreign-owned enterprises enjoy the advantages of full control over business operations, maintenance of better confidentiality of technology and trade secrets, and also availability of tax incentives such as exemption of customs duties on imported equipment, component parts and production facilities, and import of raw materials for production of export products.29. A branch office has no independent legal personality, incurs no separate liabilities, and initiates activities or programs at the direction of the parent company.30. Sino-foreign equity joint venture is the most common form of foreign investment in China. An equity joint venture(EJV)， formed between a foreign entity and a Chinese partner, is a limited liability legal entity registered in China.While a contractual joint venture, also referred to as cooperative joint venture, is a common form of cooperative investment arrangement.31. Nationalization is the act of taking an industry or assets into the public ownership of a national government. Nationalization may occur with or without compensation to the former owners. If it takes place without compensation it is a case of expropriation. Nationalization is distinguished from property redistribution in that the government retains control of nationalized property. Some nationalizations take place when a government seizes property acquired illegally.32. A joint venture (often abbreviated JV) is an entity formed between two or more parties to undertake economic activity together. The parties agree to create a new entity by both contributing equity, and they then share in the revenues, expenses, and control of the enterprise. 33. Inconvertibility means the deterioration in the investors ability to convert profits, debt service, and other investment returns from local currency into international currency and to transfer the international currency out of the host country.34. A Bilateral Investment Treaty (BIT) is an agreement establishing the terms and conditions for private investment by nationals and companies of one state in the state of the other. This type of investment is called foreign direct investment (FDI). BITs are established through trade pacts. The main modes of bilateral investment treaty include the German Mode and American Mode.35. Preferential tax policy, disclosure of information and Control of international tax avoidance and evasion.36. Market risk, legal risk and political risk.37. Political risk includes currency inconvertibility, expropriation and rebellion or civil war.38. Eligible investors, eligible investments, insures insured risks, insurance products and subrogation of rights.39. Initially three principle risks were the reason for the creation of OPIC. They are risk of loss due to (1) inconvertibility, (2) expropriation or confiscation, or (3) war, revolution, insurrection or civil strife. A forth class has been added called “business interruption” caused by any of the principal three risks.40. (1) OPIC must consider investment eligibility in accordance with extensive guidance which provides that OPIC conduct operations on a self-sustaining basis. (2) It must operations to nations which provide or are in the process of providing internationally recognized right for works. (3) OPIC participates only in new investments.41. (1) The contracting parties are usually the capital-exporting states and capital-importing states, or the states with the relationship of capital exporting or importing.(2) Regulating the issues concerning that the citizens of one contracting part invest in another state territory.(3) After signing the bilateral invest treaty, the contracting parties begin to assume the obligations under that treaty.(4) The stipulations of the bilateral invest treaty and the investment legislations of the contracting parties are complementary to each other.42. preferential tax, loan, information, investment insurance,etc.43. definition of investment, most favored nation treatment, undertakings not to expropriate, recognition of the subrogation of insurer of the investment insurance, and so on.44. impartiality, rich in fund, larger coverage and more ways of remedies.45. According to Article 25 of Washington Convention, the jurisdiction of the International Centre for the Settlement of Investment Disputes (ICSID) shall extend to any legal dispute arising directly out of an investment, between a Contracting State (or any constituent subdivision or agency of a Contracting State designated to the Centre by that State) and a national of another Contracting State, which the parties to the dispute consent in writing to submit to the Centre.46. First, MIGA is an international organization of vast number of membership, which means it has much more potential eligible investors and investments.Second, as a non-government agency of any country, MIGA would not encounter political or diplomatic controversies that a state own guarantee agency may has.Third, before MIGA conclude any guarantee contract, it would ask beforehand approval of the host country concerned, which makes it much easier to negotiate with the host country if there is any risk appears.Fourth, since the host country is a contracting member of MIGA, refusal of host country to cooperate with MIGA is actually damaging its own interest.Fifth, MIGA is a member of World Bank Group and they share some of the senior staff. The later is an influential organization for developing countries. The host countries (most of developing countries) do not want to damage its relationship with the World Bank Group and give due respect to MIGA. 西北政法大学2006-2007学年上学期期 末 考 试 试 卷课程名称:国际投资法（International Investment Law） 命题人：白 艳 审核人：刘亚军 课程属性: 选修 考试方式:闭卷_院_ 级_ 班 考试成绩：_姓 名：_ 学 号：_ 总 分 人：_考试教室：_IMultiple Choices.（Choose the correct statement, 5 points each）1. Which of the following companies is the insurer under Chinese overseas investment insurance system? _A Overseas Private Investment CorporationB China Export& Credit Insurance CompanyC Peoples Insurance Corporation of China D Ministry of Commerce of China2. According to the provisions of Washington Convention, which of the following investment disputes can be submitted to the arbitration procedure of ICSID? _A disputes between the host contracting country and the home contracting countryB disputes between ICSID and a contracting countryC disputes between the national of a contracting country and the host contracting countryD disputes between foreign and domestic investors3. According to the foreign investment laws of most countries, foreign investors are usually not allowed to invest in _.A national defense industryB agricultureC international tradeD manufacture industry4. What are the main encouragement measures given to the foreign investors by the host countries? _.A preferential tax treatmentB investment insuranceC financial supportD diplomatic immunities5. Convention on the Settlement of Investment Disputes between States and Nationals of Other States is often referred to as_.A New York Convention B Washington ConventionC Warsaw ConventionD Seoul Convention6. Which of the following are usually considered as Trade-Related Investment Measures (TRIMs)? _.A requirement of purchase by an enterprise of products of domestic originB use of imported products of an enterprise limited to an amount related to the value of its exportsC limitation on the percentage of shares of the foreign investors in a joint-ventureD limitation on the type of foreign investment7. In accordance with Chinese law, the investment of a foreign investor in a joint venture could be in the form of_.A cashB intellectual propertyC equipmentD technology8. The proportion of the investment contributed by the foreign joint venturer(s) shall generally not be less than _of the registered capital of a joint venture. A 50%B 25% C 75%D 30%9. What are the usual methods to settle investment disputes? _A arbitrationB litigationC conciliationD negotiation10. What kinds of risks are covered under the MIGA investment insurance system? _A inconvertibilityB expropriationC war riskD breach of contract by the host countryII. Explanation of the terms listed below. (5 points each)1. Nationalization2. Joint venture3. Inconvertibility4. Bilateral investment treatyIII. Case Analysis (20 points)The claimant Singapore XX Co., Ltd. (Private), the respondent XX Foreign Trade Company and Macau XX Trading Co. Ltd. entered into a joint venture contract and formulated