How does government attract foreign investment?
Answers
Explanation:
Government attracts foreign investment in the followings ways
(i) Special Economic Zones have been set up to have world-class facilities such as cheap electricity, roads, transport, storage, etc.
(ii) The companies set up their units in SEZs which are exempted to pay tax for initial period of five years.
(iii) Labour laws are made flexible.
(iv) Instead of hiring workers on a regular basis, companies hire workers flexibly for short period when there is intense pressure of work.
Question: Why do governments try to attract more foreign Investments?
Answer: Governments try to attract more foreign investments for the following reasons:
It provides the necessary capital for undertaking economic activities, which would in turn boost the GDP growth...
It leads to increased employment opportunities...
It provides the required tax income for the government...
____________________________________________________
<Judge It Yourself...>
Hope it helps you! ヅ
✪ Be Brainly ✪