Bilateral Investment Treaties (BITs) are agreements between two countries that promote and protect investments made by investors from one country in the other. These treaties aim to create a stable and predictable environment for foreign investments by establishing clear rules and protections, such as fair treatment and compensation in case of expropriation. BITs often include provisions for dispute resolution, allowing investors to seek arbitration if conflicts arise. By encouraging foreign direct investment, these treaties can help boost economic growth and development in the host country, benefiting both the investor and the local economy.