Whatever we may think about lawyers, judges, and America’s dispute resolution methods, a reliable legal system in fostering and maintaining capitalism is key. Often referred to as the rule of law, it is the establishment of authority and influence that can constrain both individual and institutional behavior and the foundation on which vibrant societies are built and maintained. A legal system implied by the existence of the rule of law is not just the dispute resolution infrastructure of courts and judges, but also the principles and rules of process and procedure that apply to all that come within it, as well as the fundamental principles of substantive law that are the foundation on which more complex legal rights and responsibilities are built. The concept of due process discussed is an example of the former, and the law governing enforceable private contracts explored is an example of the latter. 

Question

As reported by The Wall Street Journal, a trend among the major oil companies early in the first decade of this millennium was to shift investment of resources to economically developed countries. This strategy was reflected in Royal Dutch Shell’s 2012 Annual Report, which noted Shell’s investments in countries with the “necessary infrastructure,” such as Australia, Canada, the United Kingdom, Norway, Germany, Denmark, and the United States. What role might the law play in creating a favorable environment for oil companies’ investments?