In another example, a GSB is often required in a transaction in which one company buys another. Because the G.S.O. defines the exact nature of what is purchased and sold, the agreement may allow a company to sell its tangible assets to a buyer without selling the naming rights attached to the transaction. The granting of additional security and security under international law to investors operating abroad can encourage foreign investment firms. While there is a scientific debate about the extent to which I2 increases FDI flows to signatory countries, policymakers tend to believe that AI encourages cross-border investment and thus promotes economic development. Foreign direct investment can, among other things, facilitate the entry of capital and technology into host countries, contribute to job creation and have other positive effects. As a result, governments in developing countries are working to put in place an appropriate framework to encourage these flows, including by concluding AAs. The second era, from 1989 to the present day, is marked by a generally more welcoming feeling about foreign investment and a significant increase in the number of ILOs. This growth of the ILO was due, among other things, to the opening of many developing countries to foreign investment, which hoped that the conclusion of ILO would make it a more attractive destination for foreign companies.
In the mid-1990s, three multilateral agreements were also concluded on investment issues in the Uruguay Round trade negotiations and on the creation of the World Trade Organization (WTO). These included the General Agreement on Trade in Services (GATS), the Trade-Related Investment Measures Agreement (TRIMS) and the Trade-Related Intellectual Property Rights Agreement (TRIPS). In addition, PTIA, like regional, inter-regional or multilateral agreements, increased during this period, as illustrated by the conclusion of NAFTA in 1992 and the implementation of the ASEAN Framework Agreement on ASEAN Investments in 1998. In general, these agreements have also begun to intensify investment liberalization.  However, the SAIs could enter a new era, as regional agreements such as the European Union, the North American Free Trade Agreement and dozens of existing or under-negotiated bilateral agreements will supplant traditional bilateral agreements. An International Investment Agreement (IIIA) is a kind of country-to-country treaty that addresses issues relevant to cross-border investment, usually to protect, promote and liberalize such investments. Most FDI covers foreign direct investment (FDI) and portfolio investments, some of which do not exclude them. Countries that enter into agreements commit to specific standards for the treatment of foreign investment in their territory.
In the event of non-compliance with these obligations, AAs continue to define dispute resolution procedures. The most common types of I2 are bilateral investment agreements (ILOs) and preferential trade and investment agreements (PTIA). International tax treaties and double taxation (DT) agreements are also considered AI, as taxation often has a significant impact on foreign investment. BSBs also contain detailed information about the buyer and seller. The agreement covers all pre-negotiation deposits and acknowledges parts of the agreement that have already been completed. The agreement also records the date of the final sale. However, despite this potential for development-friendly benefits, the changing complexity of the IGE system can also create challenges. Among other things, the complexity of the current I2 network makes it difficult for countries to maintain political coherence. The provisions agreed in one IGE may be incompatible with those of another IGE.