Legal framework of foreign direct investments

After the development of FDI in international trade, WTO has envisaged some standards, that can be named as investment principles, which overall represent investment climate. These standards are internationally recognized. Viewed as a whole, many nations have been endeavouring to adopt these standards and making the necessary amendments in their legislation to ease the entry, settlement and operation of MNC?s.In some legislations, the sectors where foreign investment is restricted are clearly stated and laid down. In some legislations, there appears to be one spesific law which regulates foreign investment and specifies the conditions or reasons where investment may be restricted. These, in general terms can be spelled as national security, public order and health and environment. In these legislations, the principle is the freedom of investment and restriction is exceptional.Turkish legislation, whereas, is quite a mixture of these concepts. The Foreign Investment Law, numbered 4875, and the other laws following it have been drafted in view of the international investment rules and include most of these rules. But the main question rising in the Turkish Law is the contradictions between these new laws and those that had been adopted many years ago, which brings many barries to foreign investment. Another important question is the lack of a legislation which lays out clearly the sectors that restrict the foreign investment.It is important that Turkish national legislation clearly define the restrictions for the foreign investments and all regulations including administrative procedures be transparent. On the other hand, there should be one station for the entry of the foreign investment.Key Words1.Foreign Direct Investments2.International Investment3.Comperative Law4.Legislation5.Law