If banks ask for collateral during borrowing loans then how did frauds like Vijay Mallya and others escaped from paying their loans and settled in foreign?
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Also, it depends on the source of FDI, American firms may value political openness more than Chinese firms.
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Factors affecting foreign direct investment
Wage rates. ...
Labour skills. ...
Tax rates. ...
Transport and infrastructure. ...
Size of economy / potential for growth. ...
Political stability / property rights. ...
Commodities. ...
Exchange rate.
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