in the past,important reasons to choose a foreign flag were the tax regimes and the possibility to employ foreign seafares. the latter reason was particularly important for countries with higher labour costs, that is mostly developed countries (cullinane,2005).today,the responsibilities of flag states in ensuring compliance with international regulations and in providing 24/7 services to shipowners are increasingly important, and many developing countries' owners also choose to register their fleets under foreign that offer a solid institutional framework and enjoy a good compliance reputation