DIRECT FOREIGN INVESTMENT (DFI)

OBJECTIVES

• Increase The Revenues

    Revenues Related Motives

1.              Monopolistic Advantage
2.              Diversification
3.              Attract New Sources of Demand
4.              React to Trade Restriction

• Cost Related Motives

1.   Factors of Production
2.   Use of Technology
3.   Use of Material

 Barriers to DFI

1. Red Tape Barriers
2.  Political Instability
3. Industry Influnce

Incentives of DFI

1. Reduce Taxes
2. Facilitation
3. Employment Increase
4. Economic Growth
5. New Technology