Choose the words from the group below to complete the text. It may be necessary to change the form of the given words.

develop, contract, difficult, require, sufficient, common, obligate, convert, payment, exhaust

TRANSFER OF FUNDS

The provisions on the transfer of 1)... are quite important as they concern a key aspect on which the interests of the host country and the foreign investor may differ. Host countries often prefer that profit be reinvested or otherwise used in the domestic economy. Furthermore, 2)... countries often incur balance-of-payments 3)... that the sudden repatriation of large profits or the proceeds from sale or liquidation can worsen. As a result they generally seek some form of flexibility. However, foreign investors regard the timely transfer of income, capital and other payments as an indispensable 4)... to operate and benefit from their investment projects, and to meet their obligations vis-a-vis shareholders, 5) creditors or licensors. Virtually every bilateral investment treaty has a provision on the transfer of payments, but there are important differences among them in terms of specific wording. With regard to the categories of transfers covered, bilateral investment treaties generally address the repatriation of the capital invested, the transfer of returns generated by an investment and dividends to the investor's shareholders, current payments made in relation to an investment (i.e. amounts that may be needed to pay current expenses, the interest and principal on loans, or other 6)... incurred by the investor, such as royalties), and proceeds from the sale of all or part of the investment...,..

Two main approaches are 7)... practice. The first is to guarantee the free transfer of all payments related to, or in connection with, an investment, accompanied by an illustrative list of covered payments. The second approach is simply to include an 8)... list of the types of payments covered by the transfer provisions. Bilateral investment treaties, with a variety of solutions, guarantee to investors the possibility of transferring payments in a freely 9)... currency, without delay and at a specified exchange rate (the official rate, the market rate or some other rate). Exceptions generally allow for a limited delay in cases of emergencies, such as in instances of 10)... foreign currency reserves. However, exceptions are to be administered on a non-discriminatory basis. In some instances, transfer guarantees are limited by the explicit application of the exchange control laws of the host country.

Read the text and give opposites for the underlined words.

DISPUTE RESOLUTION

Investment disputes under bilateral investment treaties may involve disputes between one State and investors of the other State, or between the two States parties to the treaty. They are addressed in different provisions. Disputes between purely private parties are normally resolved through recourse to the courts of the State that has jurisdiction, or to commercial arbitration. With regard to disputes between one party, generally the host country, and investors of the other party, current BITs' practice provides for recourse to agreed third party dispute settlement mechanisms: consultation and negotiation but above all arbitration. This allows investors to avoid submitting the disputes to the courts of the host State (which could be biased or perceived as such) or to ask for the diplomatic protection of its home State.

Only a few bilateral investment treaties require that the investor •exhaust local remedies before resorting to arbitration. The advantage of arbitration is that the dispute is handled in an international legal forum, generally removed from political interference and able to de­liver a speedy resolution. The methods for resolving disputes between States parties to bilateral investment treaties involving the application or interpretation of the treaty are also typically spelled out in a number of provisions in bilateral investment treaties.

While the provisions regarding State-to-State disputes are generally rather short, calling for ad hoc arbitration in case consultations fail, most bilateral investment treaties contain rather elaborate provisions on the settlement of disputes between an investor and the host country (so-called investor—State disputes), regarding the composition of the arbitration panel, timeframes, the scope of arbitrable disputes, and procedural rules.

While current practice features several variations, the general trend is to give investors a choice of arbitral mechanisms through institutions such as the World Bank's.International Centre for the Settlement of Investment Disputes (ICSID) and its affiliated Additional Facility for host countries which are not party to the Washington Convention, the International Chamber of Commerce or the various regional arbitration centres, or through reference to other arbitral rules, such as those established by the United Nations Commission on International Trade Law (UNCITRAL).

The inclusion in bilateral investment treaties of various institutional options to conduct arbitration is generally regarded as an expression of consent to arbitration on the side of the host state. Such consent is expressly stated in some cases, such as in the US practice. Investors have to provide their own written consent to arbitration. Arbitration awards are then binding on the parties. Arbitration proceedings are generally confidential, and awards are sometimes published. Participation of amici curiae is normally not allowed. Enforcement is usually carried out on the basis of the provisions of the New York Convention..