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:

    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)

    Parents ought, through their own behavior and the values by which they live, to provide direction for their children. But they need to rid themselves of the idea that there are surefire methods which, when well applied, will produce certain predictable results. Whatever we do with and for our children ought to flow from our understanding of and our feelings for the particular situation and the relation we wish to exist between us and our child.
    Bruno Bettelheim (20th century)

    How can you tell if you discipline effectively? Ask yourself if your disciplinary methods generally produce lasting results in a manner you find acceptable. Whether your philosophy is democratic or autocratic, whatever techniques you use—reasoning, a “star” chart, time-outs, or spanking—if it doesn’t work, it’s not effective.
    Stanley Turecki (20th century)