Attracting FDI is dependent upon the existence of a successful private sector and the creation of a business climate which offers businesses a familiar and competitive environment comparable to what can be found in countries which have been successful in attracting FDI to operate from.
Creating continuous private sector activity is a challenge in all developing countries. It is particularly necessary if these countries wish to enter and compete in the global business economy which can only be the domain of an active, dynamic and entrepreneurial private sector.
Repatriation of Capital and Profits: Foreign investors must be guaranteed the unhindered ability to transfer their profits and capital out of the country. No investor will invest if profits and capital are impossible to repatriate. If repatriation is difficult, foreign investors may devise a variety of nontransparent means to withdraw their investment. These means are …
Industrial Clusters: Industrial clusters play an important role in economic activity. This is particularly true in technology intensive industries. Industry clusters are concentrations of firms in one or more industries, which benefit from the synergies developed by the existence of a network of competitors, buyers and suppliers. Clusters contain demanding buyers, specialized suppliers, sophisticated and …
