Saturday, July 26, 2008

Types of FDI

Types of FDI


Inward FDI is encouraged by:
  • Tax breaks, subsidies, low interest loans, grants, lifting of certain restrictions
  • The thought is that the long term gain is worth more than the short term loss of income

Inward FDI is restricted by:

  • Ownership restraints or limits
  • Differential performance requirements

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