foreign direct investment (FDI) policies play an important role in the economic development of the developing countries in the world. Attracting FDI with conductive policies therefore became an important battlefield in the emerging markets.Developed countries also sought to bring more FDI and to use the policies and various incentives to attract foreign investors, particularly for the capital intensive industry and advanced technology.Governments are increasingly setting up promotional agencies to promote foreign direct investment. These agencies promote FDI-friendly policies, identify areas and potential investors, and the specific transaction structures and incentives for foreign investors such as-the multinational corporations (MNCs).
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