Foreign Direct Investment - Methods

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:

    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)

    The comparison between Coleridge and Johnson is obvious in so far as each held sway chiefly by the power of his tongue. The difference between their methods is so marked that it is tempting, but also unnecessary, to judge one to be inferior to the other. Johnson was robust, combative, and concrete; Coleridge was the opposite. The contrast was perhaps in his mind when he said of Johnson: “his bow-wow manner must have had a good deal to do with the effect produced.”
    Virginia Woolf (1882–1941)

    There are souls that are incurable and lost to the rest of society. Deprive them of one means of folly, they will invent ten thousand others. They will create subtler, wilder methods, methods that are absolutely DESPERATE. Nature herself is fundamentally antisocial, it is only by a usurpation of powers that the organized body of society opposes the natural inclination of humanity.
    Antonin Artaud (1896–1948)