Question

To encourage inward FDI, it is increasingly common for governments to

		offer tax concessions to foreign firms that invest in their countries.
		exclude foreign companies from specific industries.
		require that local investors own a significant proportion of the equity in a joint venture.
		prohibit MNEs from joining a cartel.
		impose high custom duties on foreign firms.

Answer 1

offer tax concessions to foreign firms that invest in their countries.

This is also the reason for Mexico to attract a large number of firms who were looking for a destination where labor is cheap and tax rebates and tax laws are moderate.Many Asian economies have more or less developed their tax laws that allow foreign firms to invest 50 to 100 percent in FDIs. Note that custom duties, prohibition of MNEs, imposing stringent requirements such as a greater share of national companies in joint ventures all are regressive for FDIs.