Methods
The foreign direct investor may acquire voting power of an enterprise in an economy through any of the following methods:
- by incorporating a wholly owned subsidiary or company
- by acquiring shares in an associated enterprise
- through a merger or an acquisition of an unrelated enterprise
- participating in an equity joint venture with another investor or enterprise
Foreign direct investment incentives may take the following forms:
- low corporate tax and individual income tax rates
- tax holidays
- other types of tax concessions
- preferential tariffs
- special econo'''mic zones
- EPZ – Export Processing Zones
- Bonded Warehouses
- Maquiladoras
- investment financial subsidies
- soft loan or loan guarantees
- free land or land subsidies
- relocation & expatriation
- infrastructure subsidies
- R&D support
- derogation from regulations (usually for very large projects)
Read more about this topic: Foreign Direct Investment
Famous quotes containing the word methods:
“The greatest part of our faults are more excusable than the methods that are commonly taken to conceal them.”
—François, Duc De La Rochefoucauld (1613–1680)
“In inner-party politics, these methods lead, as we shall yet see, to this: the party organization substitutes itself for the party, the central committee substitutes itself for the organization, and, finally, a “dictator” substitutes himself for the central committee.”
—Leon Trotsky (1879–1940)
“Commerce is unexpectedly confident and serene, alert, adventurous, and unwearied. It is very natural in its methods withal, far more so than many fantastic enterprises and sentimental experiments, and hence its singular success.”
—Henry David Thoreau (1817–1862)