The Philip Morris v. Uruguay case reaffirmed states' rights to regulate in the public interest, particularly for health measures. The ICSID tribunal ruled that Uruguay's tobacco regulations did not constitute expropriation or unfair treatment, setting a key precedent.

Globalization has transformed investment law, shaping foreign direct investment (FDI) flows, regulatory frameworks, and investor protections. Bilateral treaties, dispute mechanisms, and economic integration reflect the evolving legal landscape of cross-border investments.

International investment law shapes economic policies in developing nations by attracting FDI while restricting regulatory sovereignty. While it fosters growth, it raises concerns over investor-state disputes, financial burdens, and environmental sustainability.