Due to multiple expected development benefits, through tax reformation and policy planning to foreign investors will attracting foreign direct investment (FDI) which has been a key objective on sustainable industrial development and economy growth general although this is not the only factors, find out more on details below.
Therefore, in order to attract FDI which is very important on brings foreign currencies governments have to offer various incentives, including fiscal incentives such as reduced corporate tax rates, financial incentives such as grants and preferential loans, and monopoly rights with the possibility of neighboring countries engaging in harmful competition the so called race to the bottom.