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 ancient bitter opposition to improved methods [of production] on the ancient theory that it more than temporarily deprives men of employment ... has no place in the gospel of American progress.”
—Herbert Hoover (1874–1964)
“The philosopher is in advance of his age even in the outward form of his life. He is not fed, sheltered, clothed, warmed, like his contemporaries. How can a man be a philosopher and not maintain his vital heat by better methods than other men?”
—Henry David Thoreau (1817–1862)
“A writer who writes, “I am alone” ... can be considered rather comical. It is comical for a man to recognize his solitude by addressing a reader and by using methods that prevent the individual from being alone. The word alone is just as general as the word bread. To pronounce it is to summon to oneself the presence of everything the word excludes.”
—Maurice Blanchot (b. 1907)