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 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)
“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)
“Cold and hunger seem more friendly to my nature than those methods which men have adopted and advise to ward them off.”
—Henry David Thoreau (1817–1862)