Foreign Investment, TNCs and

International Trade
Presented by: Upendra Raj Dulal
 FDI regulating Laws?
• Foreign Investment and Technology Transfer
Act 2019 (“FITTA”);
• Public Private Partnership and Investment Act
2019 (“PPPIA”);
• Industrial Enterprise Act 2020 (“IEA”); and
• Foreign Exchange (Regulation) Act 1962
(“FERA”).
 FDI
• The term ‘foreign’ refers to outside the country and ‘investment’
refers to any use of resources intended to increase the future
production, output or income of the investor.
• Sornarajah – “FI involves the transfer of tangible and intangible
assets from one country into another for the purpose of use in
that country to generate wealth under the total or partial control
of the owner of asset.”
• Section 2(b) of FITTA, “foreign investment” means the following
investment made by a foreign investor in any industry:
• a. Investment in share (equity)
• b. Reinvestment of the earning derived from the investment
• c. Investment made in the form of load or loan facilities.
 FDI
• Foreign direct investment refers to international capital flows that
allow a firm in one country to create or expand a subsidiary in
another country.
• The internationally accepted definition of foreign direct
investment is that provided in the fifth edition of the IMF's
Balance of Payment Manual (International Monetary Fund 1993,
p. 87). UNCTAD’s definition is derived from this definition but is
more comprehensive. Therefore the following definitions for FDI,
FDI flow and stock are quoted from the World Investment Report
2002 (UNCTAD 2002b, p. 291):
FDI is defined as an investment involving a long-term relationship
and reflecting a lasting interest and control of a resident entity in
one economy (foreign direct investor or parent enterprise) in an
enterprise resident in an economy other than that of the foreign
direct investor (FDI enterprise or affiliate enterprise or foreign
affiliate).
• Foreign direct investment has three components:
• 1. equity investment: the foreign direct investor’s purchase of
share of an enterprise in a country other than its own.
• 2. reinvested earnings: comprise the direct investor’s share
(in proportion to direct equity participation) of earnings not
distributed as dividends by affiliates, or earnings not remitted
to the direct investor. Such retained profits by affiliates are
reinvested.
• 3. intra-company loans or intra-company debt-transactions:
refers to short- and long-term borrowing and lending of funds
between direct between parent firms and foreign affiliate.
 Forms of Foreign Investment
The Foreign Investment and Technology Transfer Act, 2019 (2075)
defines “Foreign investment” as the following investment made by a foreign
investor in an industry or company:

(1) Share investment in foreign currency,

(2) Re-investment in an industry of dividends derived from foreign
currency or shares,
(3) Lease finance made
(4) Investment made in venture capital fund
(5) Investment made in listed securities through secondary securities market,
(6) Investment made by purchasing shares or assets of a company
incorporated in Nepal,
(7) Investment received through the banking channel after issuing
securities in a foreign capital market by an industry or company incorporated
in Nepal,
(8) Investment made through technology transfer, or
(9) Investment maintained by establishing and expanding an industry in
Nepal.
• Foreign investment may be made by purchasing assets
or shares of industry: (Section 5)
• A foreign investor may make foreign investment by
purchasing the assets of or shares not exceeding the
prescribed percent of any industry established in Nepal.
• Lease investment may be made: (Section 6)
• A foreign investor may make foreign investment,
subject to the prescribed ceiling, in any aircraft, ship,
machinery and equipment, construction equipment or
similar other equipment.
• Investment may be made through technology transfer:
(Section 7)
• A foreign investor may make foreign investment by making
technology transfer in any industry established in Nepal.
• The terms of technology transfer to be made shall be as
specified in the technology transfer agreement entered into
between the concerned industry and the foreign investor.
• The technology transfer agreement may not provide for the
repatriation of royalty in excess of the prescribed ceiling.
• The technology transfer agreement has to be got approved
by the foreign investment approving body.
• The foreign investment approving body may, in giving
approval, specify the necessary terms on the basis inter alia
of international practices on foreign investment and
production and selling capacity of the industry.
• Foreign investment may be made by establishing a branch: (Section 8)
• Any industry incorporated in a foreign country may make foreign investment by
establishing or expanding its branch industry in Nepal, subject to the prevailing
law.

• Foreign investment may be made by establishing venture capital fund: (Section

9)
• An institutional foreign investor may, for the purpose of investing equity in any
industry, establish a venture capital fund by incorporating a company in
accordance with the prevailing law, and by obtaining approval of the Securities
Board.
• An approval shall have to be obtained by fulfilling the procedures prescribed for
the investment in an industry from the fund
• Such a company shall provide the statements of the venture capital fund to the
Department in every six months.

• Loan may be borrowed from foreign financial institution: (Section 12)

• Any industry having foreign investment may on the recommendation of the
Ministry and with the approval of the Nepal Rastra Bank, in accordance with the
prevailing law, borrow a project loan from, or a loan by entering into a project
financing agreement with, any foreign financial institution.
• A foreign investor may make foreign
investment individually or jointly or by
establishing an industry jointly with an
industry established in Nepal or a Nepali
citizen.
 Types of Foreign Investment?
There are primarily four types of foreign investment:
• Foreign Direct Investment (FDI)
• Foreign Portfolio Investment (FPI)
• Foreign Indirect Investment
• Sovereign Wealth Funds

Foreign Direct Investment (FDI):

• FDI is when a foreign entity makes a direct investment in a company or
organization located in a foreign country.
• This type of investment is long-term and often involves significant
capital investments.
• It can take various forms, such as the acquisition of a foreign company,
the establishment of a new company, or the purchase of real estate.
• The foreign entity has a significant degree of control and ownership
over the investment.
 Types of Foreign Investment?
Foreign Portfolio Investment (FPI):
• Foreign Portfolio Investment (FPI) is an investment in a foreign
country’s financial markets, such as stocks, bonds, and other
securities.
• Unlike FDI, FPI does not involve direct ownership or control over the
investment.
• Instead, FPI investors buy and sell securities on the open market with
the hope of generating profits from changes in the market price.
• Example: an investor from Germany decides to buy shares in a
Japanese technology company listed on the Tokyo Stock Exchange.
Instead of acquiring a controlling interest in the company, the
German investor purchases these shares through a brokerage firm in
Germany. By doing so, they become a part-owner of the Japanese
company but do not hold enough shares to influence its
management decisions or operations significantly
Foreign Indirect Investment:
• Foreign Indirect Investment refers to investment made through an intermediary or a third
party.
• Foreign indirect investment refers to investments made by a company or individual in foreign
financial instruments, rather than directly investing in foreign physical assets or operations.
An example of foreign indirect investment could be:
• Example: a U.S.-based investor buying shares of a mutual fund that primarily invests in stocks
of companies located in various countries, such as Japan, Germany, and Brazil. This mutual
fund pools funds from multiple investors to buy a diversified portfolio of foreign stocks, giving
the U.S. investor indirect exposure to international markets without directly owning shares of
those foreign companies.

Sovereign Wealth Funds:

• Sovereign Wealth Funds are state-owned investment funds that invest in foreign countries.
• They are typically funded by foreign currency reserves, natural resource revenues, or other
sources of income.
• Sovereign Wealth Funds are long-term investors, and they often make significant investments
in infrastructure projects, real estate, and other strategic assets.

• Example: Norway's Government Pension Fund Global (GPFG): This is one of the largest
sovereign wealth funds globally. It is managed by Norges Bank Investment Management and
is funded by the country's oil revenues. The fund focuses on investing in international stocks,
bonds, and real estate to secure the future financial well-being of the Norwegian population.
• Types of foreign direct investment??:
• 1 – Horizontal Investment
• When an investor establishes a similar type of business in a
foreign country or when two companies of the same
industry (operating in different countries) merge, it is known
as horizontal investment. A company pursues this kind of
investment to gain market share and become a global
leader.
• Horizontal FDI is when a foreign company duplicates its
business activities in the host country.
• Example: One of the most definitive examples of horizontal
integration was the acquisition of Instagram by Facebook
(now Meta) in 2012 for a reported $1 billion. Both
companies operated in the same industry (social media) and
shared similar production stages in their photo-sharing
services.
• 2 – Vertical Investment
• It refers to when a company of one country acquires or merges with
a firm in another country, irrespective of their business fields.
• Vertical FDI is when the foreign company establishes manufacturing
sectors in different countries where each contributes to the supply
chain production process.
• For example, a manufacturing business of one country acquiring the
supplier of raw materials for production of another country. A
company indulges in this type of investment to remove the
dependency on others and achieve economies of scale.
• Netflix
• Fossil Fuel Industry
• The fossil fuel industry is a case study in vertical integration. ABCD
Petroleum, have exploration divisions that seek new sources of oil
and subsidiaries that are devoted to extracting and refining it. Their
transportation divisions transport the finished product. Their retail
divisions operate the gas stations that deliver their product.
 Nature of Licensing Agreement

• Licensing Agreement
• A licensing agreement is a contract between two parties (the licensor and
licensee) in which the licensor grants the licensee the right to use the brand
name, trademark, patented technology, or ability to produce and sell goods
owned by the licensor.
• In other words, a licensing agreement grants the licensee the ability to use
intellectual property owned by the licensor.
• Licensing agreements are commonly used by the licensor to commercialize
their intellectual property.
• In this type of agreement, licensor seeks revenue in the form of royalties which is
usually as a percentage of sales.
• Example: A patent owner granting a drug manufacturer a license to use the
patented formula in manufacturing and selling a prescription drug.
• Business assets are the ones that are mostly licensed. All
types of business assets can be licensed although licensing
mostly entails intellectual property such as copyrights,
patents, and trademarks. Digital assets such as trademarks
and apps are usually licensed.
• Copyright licenses-entails the right to replicate the production
and selling of the copyrighted commodity and derivative
works. The right to do the work in public may also be licensed.
• Patent licenses- include the privilege to manufacture, sell,
utilize, give out and sell overseas the patented commodity.
• Trademark licenses- this entails the privilege to utilize the
trademark on particular objects in certain ways.
• Trade secret-this includes the privilege to make use of the
trade secret in certain ways, a particular place and in specific
procedures.
• Licensing agreements are legal contracts where a licensor (the owner of a
product, brand, technology, or intellectual property) grants permission to a
licensee to use the rights to that property under specific terms and conditions.
• The nature of licensing agreements can vary widely based on the type of
intellectual property involved and the specific terms negotiated between the
parties. Here are some key aspects of their nature:

• Intellectual Property Rights Transfer: Licensing agreements allow the licensee

to use certain intellectual property rights owned by the licensor. This could
include patents, trademarks, copyrights, trade secrets, or other proprietary
technologies.
• Scope of Use: The agreement outlines the specific scope of the license,
including the permitted use of the intellectual property. It might specify
territories where the licensee can operate, the duration of the agreement, and
any limitations on the use of the property.
• Terms and Conditions: Licensing agreements detail the terms and conditions
under which the licensee can use the licensed property. This includes any
royalties or payments due to the licensor, quality control standards,
confidentiality clauses, dispute resolution mechanisms, and termination
clauses.
• Royalties and Payments: Typically, the licensee agrees to pay
royalties or license fees to the licensor for the use of the intellectual
property. These payments can be structured in various ways, such as
a percentage of sales, fixed fees, or milestone-based payments.
• Quality Control and Standards: Licenses often include provisions for
maintaining quality standards. The licensor may have the right to
inspect the licensee's operations to ensure that the intellectual
property is being used appropriately and in line with established
quality levels.
• Ownership and Exclusivity: The agreement defines whether the
license is exclusive (granting sole rights to the licensee within a
specified scope) or non-exclusive (allowing the licensor to grant
similar rights to others).
• Termination and Renewal: Licensing agreements specify conditions
under which the agreement can be terminated, including breach of
contract, expiration of the term, or mutual agreement. They may also
outline procedures for renewal if both parties wish to continue the
arrangement.
 Nature of Distribution Agreement
• Distribution agreements are contracts between a manufacturer or supplier
(the supplier) and a distributor outlining the terms and conditions for the
distribution of goods or services. These agreements establish the framework
for how products will be distributed, sold, and marketed.
• Distribution Agreement ( Nepal Agency Act 2014 (1957) regulates)
• In a distribution agreement, the business owner or the Supplier appoints a
Distributor to sell or distribute the Supplier's products in an agreed territory.
• A distributor:
- buys goods on his own account from supplier/exporter;
- resells goods to customers in his own territory as an independent
contractor; -adding a margin to cover his own costs and profit; and
-does not act as a channel of communication between the supplier and the
customer (no authority to create a contract between his own
supplier and the customer).
-May be low risk way for supplier/exporter to expand business into new
markets/territories
 Distribution Agreement
• If a distributors fails to resell the products, it will be the Distributor's loss.
• The Distributor keeps any profit made from the resale, and they are not required
to pay fees to the Supplier for the right to sell the products under the brand.
• "Agent" means a person holding Agency of a local or foreign firm for the
whole or any part of Nepal and this expression also includes a person who
works as a distributor, stockiest, nominee or representative (Section 2(a)
Nepal Agency Act)
• Distribution Agreement includes contract tenure, sales territories, the
maximum retail price, margins for the distributor and distribution
procedures.
• The distributor can also provide a range of post-sale services such as
technical support and repairs.
• Under this arrangement, the distributor has to comply with specific terms
and legal obligations, and is often responsible for inventory maintenance,
marketing, warehousing, and transportation of the product.
• The distributor also undertakes the risks associated with the sale of products
including loss or theft, damage, cancellation and currency variation for
international dealings.
• The nature of distribution agreements encompasses several key aspects:
• Roles and Responsibilities: The agreement delineates the roles and
responsibilities of both parties. The supplier manufactures or supplies the
goods or services, while the distributor takes responsibility for selling,
marketing, and often storing or delivering the products to customers.
• Product Details: Distribution agreements specify the products or services
covered by the agreement, including their description, specifications,
pricing, and any limitations or restrictions on their distribution.
• Territory and Market: The agreement defines the geographical territory or
market in which the distributor has the right to sell the products. It may
specify exclusivity within a particular region or market segment, or it might
be non-exclusive, allowing multiple distributors to operate in the same
area.
• Sales and Performance Targets: Distribution agreements often include
targets or minimum sales requirements that the distributor is expected to
meet. These targets can be expressed in terms of volume, revenue, or
other performance metrics.
• Pricing and Payment Terms: The agreement outlines the pricing
structure for the products, including wholesale prices, discounts,
and payment terms. It specifies how the distributor will be
compensated for sales and the timing of payments to the supplier.
• Marketing and Promotion: Distribution agreements may detail the
marketing and promotional activities that the distributor is
expected to undertake. This could include advertising, promotional
campaigns, trade shows, or other marketing efforts to promote the
products.
• Intellectual Property and Branding: If applicable, the agreement
addresses issues related to trademarks, branding, and intellectual
property rights associated with the products being distributed. It
may include guidelines on how the brand should be represented
and protected.
• Duration and Termination: The agreement specifies the duration of
the arrangement and conditions under which it can be terminated,
such as breaches of contract, failure to meet sales targets, or
mutual agreement between the parties.
 Franchising Agreement
• In a franchise agreement, the business owner, the Franchisor,
grants the Franchisee the right and license to operate the
business in an agreed territory.
• A franchise is far more involved than licensing or a
distributorship, as the Franchisor exercises a greater level of
control over the Franchisee and the Franchisee's operation of
the franchised business.
• Most franchise systems generally require a Franchisee to open
an outlet branded with the Franchisor's brand to provide the
products or services as a replica of the Franchisor's business.
• Ex: Starbucks, Macdonald’s
• The Franchisee are obliged to maintain the same
experience regardless of the country or fundamental
cultural differences.
• The Franchisor imposes strict regulations and
controls relating to the operation and location of the
business and provides assistance and training to the
Franchisee to achieve this uniformity.
• Payment are usually as royalties of sales, as an uplift
on the product cost, or sometimes as a combination
of the two and is usually periodic.
 Basic Requirements?
• Parties: A person (the franchisor) grants another person (the
franchisee) the right to carry on a business in particular territory
supplying goods or services under a specific system or marketing plan.
• Control: The business is substantially determined, controlled, or
suggested by the franchisor or its associate.
• Business Association: The business is associated with a particular
trademark, advertising or a commercial symbol owned, used, licensed,
or specified by the franchisor or its associate.
• Pre-payment: The franchisee must make, or agree to make, certain
types of payments to the franchisor or its associate, before starting or
continuing the business.
• Written Agreement: Franchisees usually enter a franchise agreement
by signing a written document.
• Franchise agreements are legally binding contracts between a franchisor (the owner
of a business model, brand, or trademark) and a franchisee (an individual or entity)
who is granted the right to operate a business using the franchisor's trademarks,
systems, and support.
• The nature of franchise agreements encompasses several key aspects:
• Business Model Transfer: The franchisor grants the franchisee the right to use its
established business model, brand name, trademarks, and proprietary systems,
often in a specific geographical area.
• Fees and Financial Obligations: Franchisees typically pay an initial franchise fee for
the right to use the franchisor's brand and business model. Additionally, ongoing
royalties or advertising fees may be required.
• Operational Guidelines: Franchise agreements outline the standards and
operational guidelines that the franchisee must follow. This includes details on
products/services offered, quality standards, business hours, pricing guidelines, and
more.
• Training and Support: Franchisors often provide initial and ongoing training and
support to franchisees. This may include operational training, marketing support,
assistance with site selection, and ongoing guidance.
• Territorial Rights: The agreement may specify the geographical area where the
franchisee can operate. It can be exclusive, ensuring no other franchise of the same
brand operates nearby, or non-exclusive, allowing multiple franchises in the same
.
• Duration and Renewal: Franchise agreements have a specific duration,
often ranging from 5 to 20 years, after which they can be renewed based
on mutual agreement and compliance with the terms of the contract.
• Transfer and Termination: Terms and conditions regarding the transfer of
ownership or sale of the franchise and conditions for termination or non-
renewal of the agreement are specified.
• Advertising and Marketing: The franchisor may require the franchisee to
contribute to national or regional marketing campaigns. Guidelines
regarding local advertising and marketing strategies might also be
outlined.
• Intellectual Property and Branding: Franchise agreements often detail
how the franchisee can use the franchisor's trademarks, logos, and
branding elements. They specify guidelines to maintain brand consistency.
• Compliance and Reporting: Franchisees are usually required to comply
with certain standards and report periodically to the franchisor on sales,
finances, and other operational aspects.
• Franchise agreements are structured to maintain consistency and
uniformity across all franchise locations while allowing some flexibility for
adaptation to local market conditions. They protect the interests of both
parties and provide a framework for a mutually beneficial relationship.
 Bilateral Investment Treaties (BITs)
• A Bilateral Investment Treaty (BIT) is an agreement between two countries to promote and
protect investments made by individuals or companies from one country in the territory of
the other.
• These treaties are designed to encourage foreign investment by providing a legal
framework that offers certain protections and guarantees to investors.
• Key aspects of BITs include:
• Investor Protection: BITs typically include provisions that protect investors against unfair
treatment, such as expropriation without compensation, discrimination, or arbitrary
actions by the host country.
• Dispute Resolution: They often outline mechanisms for dispute resolution, such as
international arbitration, to address conflicts between investors and the host country. This
allows investors to seek redress if they feel their rights under the treaty have been violated.
• Promotion of Investments: BITs aim to create a favorable investment climate by offering
assurances and stability to investors, thereby encouraging foreign direct investment (FDI)
flows between the signatory countries.
• Reciprocal Benefits: Both countries involved in the treaty seek to benefit from increased
investment flows and economic development. It's a mutual agreement that promotes
economic cooperation.
 Bilateral Investment Treaties (BITs)
• BITs are agreements between two countries that protect and promote investments of
investors of one contracting party in the territory of the other contracting party.
• Most BITs contain a number of standard provisions :
1. National Treatment: This ensures treatment of foreign investors that is
equivalent or comparable to the treatment received by domestic investors. (Article 4
of Nepal-India BIT) (Art.3 BIT with Finland)
2. Most Favoured Nation (MFN) Treatment: This ensures the same treatment of all
foreign investors, regardless of country of origin. (Article 4 of , Nepal-India BIT)
3. Fair and Equitable Treatment: This protection offers some minimum or specific level
of protection, in contrast to other forms of protection which take as their reference
point the treatment accorded to nationals or other foreign investors.
4. Restrictions on Expropriation and Indirect Expropriation: This provides protection in
the event of direct or indirect expropriation. Generally, this includes a requirement that
the host state pay full compensation for any investment subjected to such treatment.
5. Free Transfer of Funds: This allows for the repatriation of investment related funds
(profits, interest, fees, and other earnings).
• One of the distinctive feature of BITs is that it allows
for an alternative dispute resolution mechanism,
• whereby an investor whose rights under the BIT have
been violated could have recourse
to international arbitration,
• often under the auspices of the ICSID (International
Center for the Settlement of Investment Disputes),
• rather than suing the host State in its own courts.
• (Art.9 Finland Nepal BIT)- refers arbitration by ICSID)
 Bilateral Investment Treaty
• Nepal has signed six bilateral investment treaties (BITs)
with the following countries:
S.N Country Name Treaty Name Status
1 India India - Nepal BIT (2011) Terminated
2 Finland Finland - Nepal BIT (2009) In force
3 Mauritius Mauritius- Nepal BIT (1999) Signed (not in force)
4 UK Nepal - United Kingdom BIT In force
(1993)
5 Germany Germany-Nepal BIT (1986) In force
6 France France-Nepal BIT (1983) In force

• Among which only four are in force. Nepal’s BIT with

India and Mauritius have not yet come into force
 Criticism of BITs
• Sovereignty Concerns: Critics argue that BITs can undermine
a country's sovereignty by limiting its ability to regulate in the
public interest, such as in matters of environmental
protection or public health.
• Lack of Balance: Some view BITs as favoring investors' rights
over the host country's ability to regulate and address social
or environmental concerns.
• Arbitration Issues: The dispute resolution mechanisms within
BITs, particularly investor-state dispute settlement (ISDS),
have faced criticism for being costly, lacking transparency, and
sometimes favoring investors over governments.
 Transnational companies (TNCs):
• TNCs are companies that operate in more than one country i.e. they have
business activities of a transnational character.
• However, they do not have a centralized management system.
• TNCs tend to have offices and headquarters located in the developed
world. They often have factories in countries that are not as economically
developed to take advantage of cheaper labor.
• Transnational corporation may be defined as a firm which engages in
direct investment in more than one country; that is, it owns and/or
controls income-generating assets (factories, mines, plantations, etc.) in
a number of countries, and is thus engaged in international production.
• TNCs are responsible for most direct foreign investment, and this can be
regarded as a package containing those factors (technology of various
kinds, managerial and organizational skills, etc.) that many would argue
are urgently required by less-developed countries.
• The distinguishing features of TNCs relate to size, scope of operations,
structure, organization, their view of the world economy, and their role in
the development of that economy
• TNCs stand for Transnational Corporations, also
known as Multinational Corporations (MNCs).
• These are large companies that operate and
have a significant presence in multiple
countries around the world.
• They conduct business activities, including
production, sales, and services, in various
nations, often having subsidiaries, branches, or
affiliates in different locations.
 Definition accepted by the United Nations Conference
on Trade and Development (UNCTAD)

• Transnational corporations are incorporated or

unincorporated enterprises comprising parent enterprises
and their foreign affiliates. A parent enterprise is defined
as an enterprise that controls assets of other entities in
countries other than its home country, usually by owning
a certain equity capital stake. An equity capital stake of
10% or more of the ordinary shares or voting power for
an incorporated enterprise, or its equivalent for an
unincorporated enterprise, is normally considered as an
threshold for the control of assets.
(UNCTAD 2002b, p. 291)
 Key characteristics of TNCs:

• They seek competitive advantage and profit

maximization by constantly searching for the
cheapest and most efficient production locations
across the world
• They have geographical flexibility – they can shift
resources and operations to any location in the world
• A substantial part of their workforce is located in the
developing world, but often employed indirectly
through subsidiaries.
 Why TNCs?
1. Business scale: TNCs are the ones that have big revenues since it already
has business realization in several countries at least. Such attitude of
business realization make the public feel secure when they deal with
such entitles.
2. Higher experience: as TNCs are normally concerned about higher targets
that normal companies do, which means that have solved certain simpler
issues and have bigger experience in the sphere of activity. Such matter
also makes TNCs more reliable as they seem to be more professional
than any other companies.
3. Success insurance: transnational companies prefer to invest in certain
companies that would realize new branch/entity for them, instead of
doing by themselves, Such kind of action decreases the risk that the
transnational company could have experiences. Such attitude gives
additional insurance to the public and interested parties that the
company would not live through some crisis or bankruptcy.

Example of TNCs are Unilever, McDonalds and Apple

 Joint Venture??
• There is no single legal definition of a "joint venture."
• The term is best defined by the existence of certain characteristics, understandings
and arrangements.
• The following are the elements of JV:
a) An agreement (written or oral) between the parties manifesting their intent to
associate as joint ventures.
b) Mutual contributions by the parties to the joint venture.
c) Some degree of joint control over the single enterprise or project.
d) A mechanism or provision for the sharing of profits or losses.

• An international joint venture (IJV) is often described as the joining together of two or
more business partners from separate jurisdictions to exchange resources, share risks
and divide rewards from a joint enterprise.
• Usually, but not always, one of the partners is physically located in the jurisdiction of
the joint venture. An IJV has elements of a partnership, but is typically formed for a
defined purpose or specified project, and, therefore, is usually limited in purpose,
scope and duration.
• The contributions of the joint venture partners often differ and tend to be specified
based on the capabilities of each partner and the nature of the venture.
• The joint venture can be a contractual arrangement between the
two joint venture partners in which the basis of the
understanding and the governing terms are contained in a
written agreement.
• More commonly today, the parties may create an equity joint
venture by forming an entity, owned, in agreed proportions, by
the respective parties or specially funded subsidiaries, or by
purchasing equity in an existing entity.
• The new entity can take the form of a limited liability company, a
corporation or one of the many other forms of entity available
under applicable national, state or local law.
• The form of joint venture chosen, whether contractual or equity,
typically denotes the level of intensity with which the parties are
pursuing the joint venture. The equity joint venture is generally
used for closer, longer term collaborations where the level of
investment is higher.
• Equity joint ventures may be more difficult to
wind up because, in addition to terminating
the contractual agreement, the parties often
choose to liquidate the assets held by the
entity, and such liquidations can be time-
consuming.
• Whether an equity joint venture or one based
upon contract, the relationship between the
joint venture parties should always be
governed by a definitive written agreement
containing the essential terms governing the
overall relationship.
 TYPES OF JOINT VENTURES?
1 Project-based Joint Venture
• Here, the entities are partnering up with one specific goal, and the
goal is usually about the execution of a project or the development
of a service that will be offered by the two companies.
• Since the purpose of this type of joint venture is the completion of
that project, the partnership ends when the project is over and the
companies can continue to do business as usual after that.

2 Functional-Based Joint Venture

• Here the two entities that are partnering up know exactly what
they’re bringing to the table and what they’re getting out of it. They
know that they can perform better as partners and they know that
this will better benefit each business. Functional expertise is usually
pooled together in a functional joint venture and this is when
synergy is created. (eg. Support to commercialize the IP rights)
3. Vertical Joint Ventures
• It occurs when two or more companies collaborate or form a partnership
to work together along different stages of the supply chain or production
process. Unlike a horizontal joint venture where companies in the same
industry or at the same stage of production collaborate, a vertical joint
venture involves partners from different stages of production or
distribution.
• For example, a vertical joint venture might involve a manufacturer
teaming up with a distributor or a supplier to create a new product or
streamline the production and distribution process. This collaboration
allows each company to leverage its strengths and resources at different
stages of the production chain, ultimately benefiting from each other's
expertise and market positions.
• Vertical joint ventures can lead to various advantages, including cost
reduction, increased efficiency in the supply chain, access to new markets,
improved distribution channels, and shared technology or expertise.
However, they also come with challenges such as aligning different
corporate cultures, managing conflicts of interest, and ensuring effective
communication and coordination between the partnering companies at
different stages of production.
 4. Horizontal Joint Venture
• It occurs when two or more companies operating within the same or similar business
areas or industries collaborate to undertake a specific project, create a new product,
or enter a new market.
• In contrast to vertical joint ventures that involve companies at different stages of the
production or supply chain, a horizontal joint venture brings together businesses that
are typically direct competitors or operate in the same industry segment. By pooling
resources, sharing risks, and combining their expertise, these companies aim to
achieve mutual benefits and competitive advantages.
• For instance, two pharmaceutical companies might form a horizontal joint venture to
co-develop a new drug, or two airlines might collaborate to share flight routes and
services. This collaboration allows the companies involved to leverage each other's
strengths, technologies, market presence, or distribution networks to achieve
common goals while still operating as separate entities outside the joint venture.
• Example: SkyTeam Cargo is the only alliance between air cargo companies and it was
founded in 2000, between four different airlines – Aeromexico Cargo, Air France
Cargo, Delta Air Logistics and Korean Air Cargo. The main purpose of the alliance was
to help the companies cut staff and fuel costs and to split profits. They entered the
agreement because they had multiple aircrafts with lots of empty seats and by
operating on a larger scale they not only managed to benefit their companies but
their customers too which received more value for smaller costs.
 Role of TNCs in International Trade
• Transnational corporations (TNCs), also known as multinational corporations
(MNCs), play a significant role in international trade due to their extensive
operations across multiple countries.
• The role of TNCs in international trade is multifaceted, impacting economies,
trade policies, technology diffusion, and employment opportunities globally.
Their operations shape and influence the interconnectedness of the global
economy.
• These corporations have a substantial impact on global trade through various
ways:
• Market Access and Expansion: TNCs often have a presence in multiple countries,
allowing them to access diverse markets. Their global operations facilitate the
exchange of goods and services between different regions, promoting
international trade.
• Supply Chains and Production Networks: Many TNCs operate complex supply
chains and production networks across borders. They source raw materials,
manufacture components, or assemble products in different countries,
leveraging comparative advantages and contributing to the global flow of goods.
• Investment and Capital Flows: TNCs invest in foreign countries, establishing
subsidiaries or branches, which can lead to technology transfers, job creation,
and infrastructure development. This investment often contributes to economic
growth and facilitates trade between nations.
 Role of TNCs in International Trade
• Innovation and Technology Transfer: TNCs often bring advanced
technologies and innovation to the countries where they operate. This
technology transfer can enhance local capabilities and competitiveness,
impacting trade dynamics by introducing new products or improving
existing ones.
• Influence on Trade Policies: Due to their economic influence and
lobbying power, TNCs can impact trade policies, regulations, and trade
agreements. They often advocate for policies that facilitate their
operations and promote free trade.
• Global Value Chains (GVCs): TNCs are central to global value chains,
where different stages of production occur in various countries. They
coordinate these activities, leading to increased efficiency, specialization,
and interconnectedness among countries in trade.
• Employment and Labor Standards: TNCs employ a significant number of
people worldwide. While they can contribute to job creation, there are
concerns about labor standards, wages, and working conditions, which
can influence trade discussions related to fair practices.
 Additional Reading materials on
Role of TNCs in International Trade
 Role of TNCs in Int’l Trade
• The activities of TNCs shall be considered in two aspects in the
global economy.
• First – in the indirect form (understood as the presence of goods
and services of individual firms on foreign markets )
• Second- in the Direct form (doing business as a result of
investments made abroad)
• With the liberalized economy, companies have the opportunity to
decide of the extent of international trade and employment.
• the most advanced form of global presence of transnational
corporations are foreign direct investment
• On FDI consists of: financial capital, reinvested earnings and loans
companies
• the trend in the flow of foreign capital have translated the
principle of relations between the rich and poor countries.
• The investments of transnational corporations in the poorest
countries may have negative effects, because it broadens the
social inequalities.
• Corporations produce goods and provide services for this group,
which have the purchasing power, but don’t take into
consideration the needs of the poorest people who do not have
the opportunity to buy the goods (this phenomenon is called a
"poverty of plenty”).
• The effect of disparities in the use of resources are the differences
in levels of development between the more developed countries
and countries with low levels of economic development.
• Important question arises whether it is possible the placement of
such resources by transnational corporations, that they will
become the factors that intensifies the development of less
developed countries, thereby absorbing investment activities?
• The role of TNCs increase all the time in the world economy.
• TNCs are becoming more independent from the control and
regulation of both the parent and the host economy.
• The strong position of corporations in the world economy due
to the functions they perform, i.e.:
- the movement of resources and capacity of production and
trade,
- the stimulation of growth and the economic efficiency,
- the stimulation of restructuring,
- the reinforcement of the market competition,
- the integration of enterprises and economies.
• TNCs reinforce the globalization process.
• Investments supports regional economic integration, both in
developed countries, developing and poor countries,
especially by the international trade.
• At the present time, there are some
60,000 MNCs worldwide, controlling more
than 500,000 subsidiaries.
• They are responsible for half of international
trade, especially due to the scale of intra-
company trading (between subsidiaries of the
same company).
 Code of Conduct of TNCs
A. General and political
• Respect for national sovereignty and observance of
domestic laws, regulations and administrative
practices
• Adherence to economic goals and development
objectives, policies and priorities
• Review and renegotiation of contracts
• Adherence to socio-cultural objectives and values
• Respect for human rights and fundamental freedoms
• Non-interference in internal political affairs
• Non-interference in intergovernmental relations
• Abstention from corrupt practices
 B. Economic, financial and social
• Ownership and control
(shall make every effort so to allocate their decision-
making powers among their entities as to enable them to
contribute to the economic and social development of
the countries in which they operate.)
• Balance of payments and financing
(should/shall carry on their operations in conformity with
laws and regulations and with full regard to the policy
objectives set out by the countries in which they operate,
particularly developing countries, relating to balance of
payments, financial transactions and other issues dealt
with in the subsequent paragraphs of this section.)
• Transfer Pricing :
shall not use pricing policies that are not based on relevant market prices, or, in
the absence of such prices, the arm's length principle, which have the effect of
modifying the tax base on which their entities are assessed or of evading
exchange control measures
• Taxation
shall not, contrary to the laws and regulations of the countries in which they
operate, use their corporate structure and modes of operation, such as the use
of intra-corporate pricing which is not based on the arm's length principle, or
other means, to modify the tax base on which their entities are assessed.
• Competition and restrictive business practices
• TNCs shall confirm to the Transfer of technology laws and regulations of the
countries they operate
• Consumer Protection
• Environment Protection
• Disclosure of Information (should disclose to the public in the countries in
which they operate, by appropriate means of communication, clear, full and
comprehensible information on the structure, policies, activities and operations
of the transnational corporation as a whole.)
 TNCs and Joint Ventures in Nepal
• Transnational Corporations (TNCs) and Joint ventures (JV) have a presence in Nepal
across various sectors, contributing to the country's economy and employment.
However, the extent and nature of TNC involvement can vary based on industries and
specific investments. Some key areas where TNCs have been involved in Nepal include:
• Hydropower and Energy: TNCs have shown interest in Nepal's hydropower potential.
Foreign companies have been involved in hydropower projects, often partnering with
Nepali entities to invest in this sector to address Nepal's energy needs. Ex: Upper
Trishuli-1 Hydropower Project
• Telecommunications: The telecommunications sector in Nepal has seen the
involvement of TNCs, contributing to the expansion and modernization of the country's
communication infrastructure.
• Tourism and Hospitality: Nepal's tourism industry, including hotels and resorts, has
attracted international investment from TNCs looking to capitalize on the country's rich
cultural heritage and natural beauty. Ex: Hyatt, Radission
• Manufacturing and Textiles: Some TNCs have invested in manufacturing sectors such as
textiles and garments, taking advantage of Nepal's skilled labor and favorable trade
agreements for export. Ex: Huaxin cement
• Banking and Finance: International financial institutions and banks have also
established their presence in Nepal, contributing to the development of the financial
sector. Ex: Standard Charter,
• Construction Industry
 What is corporate social responsibility?

• “Social responsibility is the responsibility of an organization for the impacts of

its decisions and activities on society and the environment through transparent
and ethical behavior that is consistent with sustainable development and the
welfare of society; takes into account the expectations of stakeholders; is in
compliance with applicable law and consistent with international norms of
behavior; and is integrated throughout the organization.”

Working definition, ISO 26000 Working Group on Social Responsibility, Sydney,

February 2007

• Corporate social responsibility (CSR) is also known by a number of other names.

These include corporate responsibility, corporate accountability, corporate
ethics, corporate citizenship or stewardship, responsible entrepreneurship, and
“triple bottom line,” to name just a few. As CSR issues become increasingly
integrated into modern business practices, there is a trend towards referring to
it as “responsible competitiveness” or “corporate sustainability.”
 The World Business Council for Sustainable Development has described CSR
as the business contribution to sustainable economic development. Building
on a base of compliance with legislation and regulations, CSR typically
includes “beyond law” commitments and activities pertaining to:
• corporate governance and ethics;
• health and safety;
• environmental stewardship;
• human rights (including core labor rights);
• sustainable development;
• conditions of work (including safety and health, hours of work, wages);
• industrial relations;
• community involvement, development and investment;
• involvement of and respect for diverse cultures and disadvantaged peoples;
• corporate philanthropy and employee volunteering;
• customer satisfaction and adherence to principles of fair competition;
• anti-bribery and anti-corruption measures;
• accountability, transparency and performance reporting; and
• supplier relations, for both domestic and international supply chains.
• The social responsibility of Transnational Corporations (TNCs) encompasses the ethical and
moral obligations these global entities have toward society, the environment, and the
communities in which they operate.
• The concept of Corporate Social Responsibility (CSR) or Corporate Social Responsibility
Reporting (CSR Reporting) is often employed by TNCs to demonstrate their commitment to
these principles. However, there can be debates about the sincerity and effectiveness of
CSR initiatives, with some arguing that they might serve as PR efforts rather than genuine
commitments to social responsibility.
• Government regulations, international standards, consumer activism, and stakeholder
pressure play roles in influencing and monitoring TNCs' social responsibility practices.
Additionally, investor interest in ethical investment and sustainability has increasingly
influenced TNCs to integrate social responsibility into their core business strategies.

• Key aspects of the social responsibility of TNCs include:

• Environmental Stewardship: TNCs are expected to minimize their environmental impact
by adopting sustainable practices, reducing carbon emissions, managing waste responsibly,
and investing in eco-friendly technologies.
• Ethical Labor Practices: Ensuring fair wages, safe working conditions, and respecting labor
rights are essential. This involves eliminating child labor, forced labor, discrimination, and
promoting diversity and inclusion within their workforce.
• Community Engagement: TNCs are encouraged to engage with local communities
positively. This includes contributing to community development through investments in
education, healthcare, infrastructure, and supporting local initiatives.
• Ethical Sourcing and Supply Chain Responsibility:
TNCs should ensure that their suppliers and partners
adhere to ethical standards, preventing human rights
abuses, and promoting fair trade practices
throughout the supply chain.
• Transparency and Accountability: TNCs are expected
to be transparent about their operations, financial
practices, and social initiatives. This includes
reporting on their social and environmental impacts
and adhering to regulations and reporting standards.
• Philanthropy and Social Investments: Many TNCs
engage in philanthropic activities and social
investments, supporting causes related to education,
healthcare, poverty alleviation, and disaster relief.
 CSR in Nepal?
• Nepal introduced its Corporate Social Responsibility (CSR)
provisions through the Companies Act, 2063. Under this act,
companies meeting specific criteria are required to allocate a
certain portion of their profits toward CSR activities.
• The Companies Act requires companies to allocate 1-2% of
their net profit for CSR purposes, depending on their size and
revenue.
• These activities typically include initiatives related to social
welfare, education, health, environmental conservation, and
community development.
• The intention behind these regulations is to encourage
businesses to contribute positively to society and the
environment while conducting their operations.
 Rights of women Workers
• Women's rights is the fight for the idea that
women should have equal rights with men.
• Over history, this has taken the form of gaining
property rights, the women's suffrage, or the
right of women to vote, reproductive rights,
and the right to work for equal pay.
 RIGHTS OF WOMEN: INTERNATIONAL INSTRUMENTS

• Universal Declaration of Human Rights (1948)

• Convention on the Political Rights of Women (1952)
• International Covenant on Civil and Political Rights (1966)
• International Covenant on Economic, Social and Cultural Rights
(1966)
• Declaration on the Elimination of All Forms of Discrimination
against Women (1967)
• Declaration on the Protection of Women and Children in
Emergency and Armed Conflict (1974)
• Convention on the Elimination of All Forms of Discrimination
against Women (1979)
• Declaration on the Elimination of Violence against Women (1993)
• Universal Declaration on Democracy (1997)
• Optional Protocol to the Convention on the Elimination of All Forms
of Discrimination against Women
 Rights of Women Workers
• Women workers, like all workers, are entitled to certain rights and
protections in the workplace. These rights aim to ensure fair and equal
treatment, safety, and opportunities for women in employment. Some key
rights of women workers include:
• Equal Pay: Women have the right to receive equal pay for equal work or
work of equal value compared to their male counterparts. This principle is
essential in combating gender-based wage discrimination.
• Non-Discrimination: Women should not face discrimination based on
gender in any aspect of employment, including hiring, promotion, training,
and working conditions.
• Workplace Safety: Women have the right to a safe and healthy work
environment, free from hazards and risks to their physical and mental well-
being. This includes protections against harassment, violence, and abuse
at work.
• Maternity Protection: Pregnant women and new mothers are entitled to
maternity leave, job protection, and benefits to ensure their health and
well-being during pregnancy and after childbirth.
 Rights of Women Workers
• Work-Life Balance: Women workers should have access to flexible working
arrangements, such as part-time work, parental leave, and childcare support, to
balance work responsibilities with family or caregiving duties.
• Access to Education and Training: Women have the right to access education,
vocational training, and professional development opportunities on an equal
basis with men to enhance their skills and career prospects.
• Collective Bargaining and Representation: Women have the right to organize
and participate in trade unions or other forms of representation to collectively
negotiate for better working conditions and fair treatment.
• Legal Protections: Legal frameworks should protect women workers' rights,
enforce anti-discrimination laws, and ensure remedies for violations of these
rights.
• It's important to note that these rights may vary based on national laws,
international conventions, and the specific industry or workplace. Despite these
rights being established, challenges persist in ensuring their full implementation
and enforcement globally. Advocacy, education, policy changes, and ongoing
efforts are crucial to achieving gender equality and safeguarding the rights of
women in the workforce.
 Rights of Indigenous People
• Recognizing and respecting the rights of indigenous people in the workplace is
crucial for fostering inclusive and equitable work environments. It requires
collaboration between governments, employers, indigenous communities, and
relevant stakeholders to ensure the protection and promotion of these rights within
legal frameworks, policies, and corporate practices.
• The rights of indigenous people in the workplace are fundamental and should be
protected to ensure fair treatment, respect for cultural diversity, and the
preservation of their identity. Indigenous people, like all workers, are entitled to
certain rights at work. Some key aspects of the rights of indigenous people in the
workplace include:
• Non-Discrimination: Indigenous workers should not face discrimination or prejudice
based on their indigenous identity, language, culture, or traditions. They have the
right to equal opportunities in recruitment, employment, and advancement.
• Cultural Respect: Employers should respect and accommodate indigenous cultural
practices and traditions in the workplace, including language, dress, and religious or
ceremonial practices, wherever feasible.
• Land and Resource Rights: For indigenous workers engaged in industries linked to
their ancestral lands or resources (such as mining, agriculture, or forestry), there
should be respect for their land rights, including the right to Free, Prior and Informed
Consent (FPIC) regarding any developments or projects affecting their lands.
 Rights of Indigenous People
• Consultation and Participation: Indigenous communities and workers have the right to be
consulted and participate in decision-making processes that affect their rights and interests,
especially regarding policies or projects that may impact their communities or lands.
• Preservation of Traditional Knowledge: Employers should recognize and protect indigenous
traditional knowledge, practices, and intellectual property rights, preventing exploitation or
misuse of this knowledge in the workplace.
• Access to Education and Training: Indigenous workers have the right to access education,
vocational training, and professional development opportunities to enhance their skills and
employment prospects. These opportunities should be provided in a culturally sensitive
manner.
• Health and Well-being: Indigenous workers should have access to healthcare services and
working conditions that ensure their health, safety, and well-being, considering their cultural
and traditional practices.
• Protection of Human Rights: Employers should uphold the broader human rights of
indigenous workers, including their right to freedom from forced labor, trafficking, and other
forms of exploitation.
• Recognizing and respecting the rights of indigenous people in the workplace is crucial for
fostering inclusive and equitable work environments. It requires collaboration between
governments, employers, indigenous communities, and relevant stakeholders to ensure the
protection and promotion of these rights within legal frameworks, policies, and corporate
practices.
 Rights of Migrant Workers
• Migrant workers, individuals who move from one region or country to another for
employment, are entitled to certain rights and protections at work. These rights aim to
safeguard their dignity, ensure fair treatment, and address the challenges they might face
due to their migrant status.
• It's crucial for governments, employers, and international organizations to develop
policies, legislation, and mechanisms that protect and promote the rights of migrant
workers. Collaboration between countries of origin and destination, along with effective
monitoring and enforcement mechanisms, is essential to ensure the protection of migrant
workers' rights throughout their employment journey.
• Some key rights of migrant workers at work include:
• Non-Discrimination: Migrant workers should be treated fairly and equally without
discrimination based on their migrant status, nationality, race, gender, or any other
characteristic.
• Fair Recruitment and Employment Conditions: Migrant workers have the right to fair and
transparent recruitment processes, which include clear terms of employment, wages,
working hours, and job responsibilities. Employers should avoid exploitative practices such
as debt bondage or contract substitution.
• Workplace Safety and Health: Migrant workers are entitled to a safe and healthy work
environment. Employers should provide proper safety training, protective gear, and
measures to prevent accidents and occupational hazards.
 Rights of Migrant Workers
• Access to Social Protection: Migrant workers should have access to social
security benefits, including healthcare, maternity/paternity leave, and
retirement benefits, similar to other workers in the host country.
• Documentation and Legal Rights: Migrant workers should have legal
documentation and be informed of their rights under local labor laws.
Employers should not confiscate passports or restrict workers' movements.
• Freedom of Association and Collective Bargaining: Migrant workers should
have the right to form and join trade unions, participate in collective
bargaining, and engage in activities to protect their rights without fear of
reprisals or discrimination.
• Family Rights: Migrant workers should have the opportunity to be reunited
with their families and access family-related benefits and support,
considering their specific circumstances.
• Protection Against Exploitation and Abuse: Migrant workers should be
protected from exploitation, abuse, trafficking, and forced labor. Employers
should uphold human rights standards and prevent any form of mistreatment
or coercion.
Additional Information
 INTERNATIONAL BILL OF RIGHTS
• 1.UNIVERSAL DECLARATION OF HUMAN
RIGHTS (UDHR)
• 2. INTERNATIONAL CONVENANT ON CIVIL AND
POLITICAL RIGHTS (ICCPR)
• 3. INTERNATIONAL CONVENANT ON
ECONOMIC,SOCIAL AND CULTURAL RIGHTS
(ICESCR)
• Universal declaration of human rights
• “All human beings are born free and equal in dignity and rights. They are
endowed with reason and conscience and should act towards one another in a
spirit of brotherhood”
• ICCPR
• The ICCPR recognizes the inherent dignity of each individual and undertakes to
promote conditions within states to allow the enjoyment of civil and political
rights
• ICESCR
• ICESCR rights are crucial to enable people to live with dignity. This treaty covers
important areas of public policy, such as the rights to:
a) work
b) fair and just conditions of work
c) social security
d) adequate food
e) clothing and housing
f) health, and
g) education
 Convention on the Elimination of All Forms of Discrimination against Women (CEDAW)

• Adopted on 18 December 1979 by the United Nations General Assembly.

• It entered into force as an international treaty on 3 September 1981 after the twentieth country had ratified it.
• ARTICLE 1: DEFINES DISCRIMINATION: ‘...any distinction, exclusion or restriction made on the basis of sex which
has the effect or purpose of impairing or nullifying the recognition, enjoyment or exercise by women,
irrespective of their marital status, on a basis of equality of men and women, of human rights and fundamental
freedoms in the political, economic, social, cultural, civil or any other field’

• ARTICLE 2: DUTY OF THE STATE – The state must ensure the elimination of discrimination in laws, policies and
practices nationally.
• ARTICLE 3: EQUALITY –The state must take measures to uphold women’s equality in all fields. •
• ARTICLE 4: TEMPORARY MEASURES – States are allowed to implement temporary measures, if this means the
acceleration of women’s equality.

• ARTICLE 5: CULTURE – States must abolish discriminatory cultural practices or traditions.

• ARTICLE 6: TRAFFICKING – States must take the appropriate steps to suppress the exploitation involved in
prostitution and in the trafficking of women.
• ARTICLE 7: POLITICAL AND PUBLIC LIFE – Women must have equal rights to vote, hold public office, and
participate in civil society

• ARTICLE 8: GOVERNMENTAL REPRESENTATION – Women must be allowed to work and represent their
governments internationally.
• ARTICLE 9: NATIONALITY – Women have the right to acquire, retain or even change their nationality as well as
that of their children. •

• ARTICLE 10: EDUCATION – Women have equal rights with men with regard to education.
• ARTICLE 11: EMPLOYMENT – Women have equal rights with men in employment (equal pay,
healthy working conditions etc.)
• ARTICLE 12: HEALTH – Women have equal rights to health care with an emphasis on reproductive
health services.
• ARTICLE 13: ECONOMIC AND SOCIAL LIFE – Women have equal rights to family benefits, financial
credit and equality in recreational activities.
• ARTICLE 14: RURAL WOMEN – Rural women must have the right to adequate living conditions,
participation in development planning and access to healthcare and education.
• ARTICLE 15: EQUALITY BEFORE THE LAW – Women and men must be seen as equals before the
law, have the legal right to own property and choose their place of residence.
• ARTICLE 16: MARRIAGE AND FAMILY – Women have equal rights with men within marriage,
including family planning

• United Nations Convention on Rights of Women – 1981

• defines discrimination in a way that implies that women's rights are in "political, economic, social,
cultural, civil" and other spheres.
• The Declaration specifically addresses:
a) eliminating prejudice in public education
b) full political rights to vote and to run for and to serve in public office
c) rights to change nationality equal to men's rights
d) marriage and divorce rights to be equal to men's, and elimination of child marriage
e) equality in criminal punishment
f) traffic in women, including exploiting prostitutes
g) employment rights, including non- discrimination in access to jobs, equal pay, and paid maternity
 Rights of Indigenous People

• The United Nations General Assembly

adopted the United Nations Declaration on
the Rights of Indigenous Peoples (the
Declaration) in 2007.
• The Declaration is a declaration annexed to a
resolution of the UN General Assembly, it is
not a treaty, covenant or protocol and cannot
be signed or ratified
Article 3
• Indigenous peoples have the right to self-determination. By virtue of that right they freely
determine their political status and freely pursue their economic, social and cultural
development.

Article 6
• Has the right to a nationality.

Article 7 – have the right to life, physical and mental integrity, liberty and security.
- have collective right to live in freedom, peace and security
Article 12
• Indigenous people have the right to manifest, practice, develop and teach their spiritual and
religious traditions, customs and ceremonies.

Article 13
• Indigenous peoples have the right to revitalize, use, develop and transmit to future
generations their histories, languages, oral traditions, philosophies, writing systems and
literatures, and to designate and retain their own names for communities, places and
persons.

Article 24
• Indigenous peoples have the right to their traditional medicines and to maintain their health
practices, including the conservation of their vital medicinal plants, animals and minerals.
Article 29
• Indigenous peoples have the right to the conservation and protection of the
environment and the productive capacity of their lands or territories and
resources. States shall establish and implement assistances programs for
indigenous peoples for such conservation and protection without
discrimination.

Article 32
• Indigenous peoples have the right to determine and develop priorities and
strategies for the development or use of their lands or territories and other
resources.
• States shall consult and cooperate in good faith with the indigenous peoples
concerned through their own representative institutions in order to obtain their
free and informed consent prior to the approval of any project affecting their
lands or territories and other resources, particularly in connection with the
development, utilization or exploitation of mineral, water or other resources.

Article 43
• The rights recognized herein constitute the minimum standards for the survival,
dignity and well-being of the indigenous people of the world.
• Convention on Civil and Political Rights /
Economic, Social and Cultural Rights
Also Recognizes peoples right of self-determination -
Can freely determine their political status and freely
pursue their
economic, social and cultural development.
• All peoples may, for their own ends, freely
dispose of their natural wealth and resources
without prejudice to any obligations arising out
of international economic co-operation, based
upon the principle of mutual benefit, and
international law.
• In no case may a people be deprived of its own means
of subsistence.
 Migrant Workers
RELEVANT LEGAL INSTRUMENTS
• Convention 97
• Migration for Employment Convention (Revised), 1949
• Recommendation 86
• Migration for Employment Recommendation (Revised), 1949
• Recommendation 100
• Protection of Migrant Workers (Underdeveloped Countries)
Recommendation, 1955
• Convention 143
• Migrant Workers (Supplementary Provisions) Convention, 1975
Recommendation 151
• Migrant Workers Recommendation, 1975
 Who is a Migrant Worker?
• MIGRANT WORKER means A person who
migrates or who has migrated from one
country to another with a view to being
employed otherwise than on his own account
and includes any person regularly admitted as
a migrant for employment.
 UN MW Convention 1990
• “For the purposes of the present Convention, migrant
workers and members of their families:
a. Are considered as documented or in a regular
situation if they are authorized to enter, to stay and to
engage in a remunerated activity in the State of
employment pursuant to the law of that State and to
international agreements to which that State is a party;
b. Are considered as non-documented or in an
irregular situation if they do not comply with the conditions
provided for in subparagraph (a) of the present article.”
 ILO definition

• Migrant worker in regular or lawful status: a person who

(a) has been granted the requisite authorizations in respect of
departure from his or her State of nationality or habitual residence and
in respect of employment in another State where such authorizations are
required, and
(b) who complies with the procedural and substantive conditions to
which his or her departure and employment in another State are
subject.
• Migrant worker in irregular or unlawful status :a person who
(a) has not been granted an authorization of the State on whose
territory he or she is present that is required by law in respect of entry,
stay or employment, or
(b) who has failed to comply with the conditions to which his or her entry,
stay or employment is subject.
Source: ILO Conventions 97 and 143; ILO paper, Symposium on
Undocumented/Irregular Migration, Bangkok, 1999, etc
Dimensions
Significance and conditions of Work
Access to social services
Legal & Political Matters
Items of Rights
• Right to work and receive equal wages /
pay for equal work
• Right to freedom from forced labor
• Right to protection during pregnancy
from work proven to be harmful.
• Right to safe working conditions and a
clean and safe working environment.
• Right to reasonable limitation of working
hours, rest leisure
•· · Right to a standard of living adequate for
the health and well being of the migrant
worker and his or her family. Right of children
of migrant workers to education
• Right to freedom from discrimination based
on race, national / ethnic origin, sex, religion or
any other status.
• Right to equality before the law and equal
protection of the law. Right to protection
against arbitrary expulsion
• Right to freedom of association and to join
a trade / labor union.
Dimensions Items of Rights

Family relations •Right to protection for the child from economic

exploitation and from any work that may be
hazardous to his or her well being and development.
Right to reunification.

Miscellaneous • Right to return home if the migrant wishes.

•Right to freedom of sexual harassment in the
workplace.
•Right to protection during pregnancy from work
proven to be harmful.
·ILO (1975) proclaims that migrant workers should be granted an
equal opportunity and treatment, particularly in the following
aspects:
1. Access to vocational guidance and placement services; ·
2. Access to vocational training and employment of their own
choice;
3. Advancement in accordance with their individual character,
experience, ability and diligence;
4. Security of employment, the provision of alternative employment,
relief work and retraining;
5. Remuneration for work of equal value;
6. Conditions of work, including hours of work, rest periods, annual
holidays with pay, as well as social security measures and welfare
facilities and benefits provided in connection with employment;
7. Membership of trade unions or exercise of trade union rights;
8. Rights of full membership in any form of co-operative;
9. Conditions of life, including housing and the benefits of social
services and educational and health facilities.
 Fundamental Legal Instruments
• International charter on labor migration
• the UN International Convention on the Protection of Rights of All
Migrant Workers and Members of Their Families, 1990.
• the ILO Migrant Workers (Supplementary Provisions) Convention, 1975
(No. 143)
• the ILO Migration for Employment Convention of 1949 (No. 97).
• Instruments related and/or applicable to migrants
• UN Convention against Transnational Organized Crime, 2000
• Protocol to prevent, suppress and punish trafficking in persons,
especially women and children;
• Protocol against the smuggling of migrants by land, sea and air
• Fundamental conventions of the ILO
• Other relevant ILO Conventions
• Other UN general human rights instruments