Reasons for Foreign Direct Investment n Government incentives Fiscal incentives tax holidays, allowances, credits and rebates Financial incentives special funding for land or buildings, loans and guarantees, wage subsidies Nonfinancial incentives guaranteed purchases, protective tariffs, import quotas, local content requirements, infrastructure Copyright 2001 by Harcourt, Inc. All rights reservedCopyright © 2001 by Harcourt, Inc. All rights reserved. 15-7 Reasons for Foreign Direct Investment Government incentives • Fiscal incentives – tax holidays, allowances, credits and rebates • Financial incentives – special funding for land or buildings, loans and guarantees, wage subsidies • Nonfinancial incentives – guaranteed purchases, protective tariffs, import quotas, local content requirements, infrastructure