WHAT?

An individual or a business owns more than 9.99% equity of foreign company is termed to be Foreign Direct Investment.

WHEN?

A government establishes open economy for FDI to increase GDP welcoming foreign or global investors which maximises their ROI

WHY?

Increase total production capacity circumventing trade barriers shifing from domestic export to respective national sales

HOW?

Greenfield by setting up an enterprise in a foreign land or through brownfield by performing cross border mergers and acquisitions

BENEFITS THROUGH TAX INCENTIVES

Tax Incentives as deductions, exemptions, credits for individual investors and as tax exclusions, corporate income tax credit, property tax abatement, sales tax exemption, payroll tax refund for investing businesses

EASE OF SALES

Elimination of export to the host country and increase in the product or service usage by the host country citizens and promotional brand awareness among the local workforce, increases sales of investing business

HIGHER RETURN ON INVESTMENT

Lower manufacturing and production costs and availability of best labor force results in great profit for the investor and for the investing business

OPTIMUM BUSINESS PRODUCTIVITY

Presence of skilled workforce and resource availability in the target country increases production rate as well as quality of the product or service without any international constraints to run a sustainable business

REDUCTION IN COST DISPARITY

Production cost lessens and so the selling price is reduced accordingly, which enables the regional customers to buy ofen since the cost effectiveness and quality are higher than the local manufacturer