| | |
| Summary |
| Please note: The McKinsey Quarterly has agreed to a special arrangement for CEOExpress members that allows member access to their articles. Articles must be clicked on directly through the links below to gain access to this group of articles.
|
The Truth About Foreign Direct Investment In Emerging Markets
In their zeal to attract foreign investment, governments in emerging markets offer tax breaks and subsidies that can cost them millions. Simultaneously, they enforce rules to protect inefficient domestic companies and to ensure that local economies benefit from the new business. McKinsey research finds that these incentives and restrictions are unnecessary, ineffective, and, in some cases, counterproductive.
The take-away: Foreign investment benefits the local economy in almost all cases. Moreover, foreign investors say that government funds would be better used to improve the local infrastructure than to provide investment incentives.
Articles provided by The McKinsey Quarterly
© 1992-2003 McKinsey & Company, Inc
|
|
|
