Legal Environment

Legal Environment Analysis
1. Describe the legal environment of Pakistan, making specific references to:
– the rule of law (to what extent is the country governed by law as opposed to arbitrary decisions
of individual government officials)
– laws that govern foreign direct investment (for example, are there provisions to attract foreign
direct investment, such as tax incentives, most-favored-nation treatment, dispute resolution
fora; or provisions that restrict foreign direct investors such as high local content requirements or
currency exchange restrictions).
2. Discuss challenges and opportunities for American investors posed by the legal environment.
3. Based on the challenges and opportunities you have identified through your research, formulate two
recommendations, with your supporting arguments, to an American investor to successfully navigate
the country’s legal environment.
Grading criteria
This is a written assignment worth 10 points. It needs to be 3 pages long, double-spaced, Times New
Roman 12, 1.25 margins. The 10 points are distributed as follows:
– 1 point for respecting technical specifications (writing in essay format rather than bullet points;
meeting the requirement of 3 pages, double-spaced, Times New Roman 12, 1.25 margins; the
length of 3 pages is a specific requirement
– 2 points for discussing the rule of law, i.e. accurately identifying the extent to which the country
is governed by law as opposed to arbitrary decisions of individual government officials, backed
up by evidence from primary sources and/or cited findings from secondary sources
– 3 points for identifying laws that govern foreign direct investment and discussing whether they
are favorable or unfavorable for foreign investors (as specified in the prompts for the
assignment, examples of relevant laws would be laws designed to attract foreign direct
investment, such as tax incentives, most-favored-nation treatment, dispute resolution fora; or
laws designed to restrict foreign direct investors such as high local content requirements or
currency exchange restrictions); identifying 1 relevant law would earn 1 point; identifying 2
relevant laws would earn 2 points; to earn 3 points, the paper should identify at least 2 relevant
laws (typically more) and identify overall trends in the country’s legal environment – for example,
are most laws favorable or unfavorable to foreign direct investment/ do the laws favor foreign
investors from a particular country of origin or from a particular sector of the economy/ is there
an ongoing tendency to modify existing laws to make them more or less favorable to foreign
investors
6
– 1 point for identifying challenges for American investors posed by the legal environment
– 1 point for identifying opportunities for American investors posed by the legal environment
– 2 points for formulating 2 recommendations (1 point for each recommendation) to an American
investor to successfully navigate the country’s legal environment (the recommendations have to
be actionable items; to get the full points, each recommendation has to be supported with
arguments)For more information on legal environment check on this :https://en.wikipedia.org/wiki/Environmental_law

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