There are two different kinds of Foreign Direct Investment which are explained in the following:
Outward Foreign Direct Investment: This type of Foreign Direct Investment is supported by the local government of the country and the government set aside all the risks involved in this type of investment. The reason for supporting this Foreign Direct Investment is that it is tax incentives based investment which some degree of discouragement for the investing bodes on the other side.
Inward Foreign Direct Investment: This kind of Foreign Direct Investment is supported by several economic factors. The reason behind the succession of the Inward Foreign Direct Investment is demolishes the limitations and restrictions faced by the investing bodies. It also provides them with interest loans, grants, subsidies and tax breaks.
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