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Procurement is not a financial incentive



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Procurement is not a financial incentive


Czinkota et al, 9 - Associate Professor at the McDonough School of Business at Georgetown University (Michael, Fundamentals of International Business, p. 69 – google books)
Incentives offered by policymakers to facilitate foreign investments are mainly of three types: fiscal, financial, and nonfinancial. Fiscal incentives are specific tax measures designed to attract foreign investors. They typically consist of special depreciation allowances, tax credits or rebates, special deductions for capital expenditures, tax holidays, and the reduction of tax burdens. Financial incentives offer special funding for the investor by providing, for example, land or buildings, loans, and loan guarantees. Nonfinancial incentives include guaranteed government purchases; special protection from competition through tariffs, import quotas, and local content requirements, and investments in infrastructure facilities.

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