Case Interview Prep

Answer: D - Higher and more restrictive tariffs are not examples of FDI incentives.

Key Takeaway: Governments like to attract foreign investment to raise the GDP of their countries and become more competitive. FDI incentives to attract this capital include lowered income and corporate taxes. Some countries such as the United Arab Emirates also offer special economic zones of trade. Other incentives include land and expatriation subsidies as well as lower tariffs.