Policies to Attract Foreign Direct Investment

There is keen competition among developed and developing countries to attract foreign direct investment.This drive to 1. erlu ventestmin often extends to the subnational level, with different regional authorities pursuing their own strategies and assembling their own 2. sabkets of cenin tives to attract new investments. Various reforms and strategies have been implemented, with 3. dexim sultser. Some are critical of the high costs of many of these initiatives, arguing that it would be more rewarding to improve a country’s general 4. nessisub enmentronvi.
The resources gathered under this topic look at the many different methods used by 5. pomaker s licy to attract FDI and their effectiveness. These approaches include:

· providing targeted fiscal incentives, such as 6. atx cessionsnoc, cash grants, and specific 7. sibusdies;

• improving domestic infrastructure;
• promoting local skills development to meet investor needs and expectations;
• establishing 8. daorb-reingach FDI promotion agencies;
• improving the regulatory environment and decreasing 9. erd peta; and
• engaging in international governing arrangements.

(Source: http://rru.worldbank.org/PapersLinks/Policies-Attract-Foreign-Direct-Investment)

Assignment 6. The following text describes awareness- and image-building activities − the cornerstone of investment promotion. If investors have an undeservedly negative perception of your location or know little about your location and its advantages, your efforts to generate investment will be less effective. Look through the tips strengthening the location’s image and in small groups, work out a draft of your own image-building campaign.

Step 1. Identify Investor Perceptions and Establish Image-Building Objectives:

You need to know what investors think about your location to design an effective image-building campaign. To identify investor perceptions, you should review published documents and survey investors in your target sectors.

You can measure investor perceptions in several ways. You should first refer to publicly available reports on your location and its investment climate. A variety of organizations produce these reports, including multilateral institutions and both governmental and nongovernmental sources. Examples include the country reports compiled for the World Investment Report (WIR), technical reports by the World Bank, and investment guides compiled by private consultancy firms. Other sources include the country reports produced by the US Department of Commerce, and the Economist Intelligence Unit’s annual publications. You can also perform online searches via the Internet of the archives of leading newspapers.

Step 2. Develop Marketing Themes:

Your central marketing message should be driven by survey findings.

To be effective, the theme must do more than simply proclaim your location’s benefits. It must resonate with the investors' impression that your location offers something they need. When developing a marketing theme, the following principles will help to ensure that the message is focused and pertinent:

The theme must reflect what the investor is looking for. Never lose sight of the fact that a foreign investor’s principal need is to serve the customer better, while improving operational efficiency and enhancing profitability. Your marketing theme must demonstrate how you can help the investor to meet this need. For example, a marketing theme might stress your location’s cost-efficient yet highly skilled labor, rather than simply proclaim that it is a wonderful place to live.

The theme must reflect your location’s unique selling proposition. To distinguish your location in the eyes of investors, the marketing theme must clearly identify your location’s unique selling proposition (USP). If it is difficult to identify the USP, the marketing message should try to differentiate the location by focusing on a package of factors and the facilitative skills of the IPI.

The message must be accurate and truthful. It goes without saying that the theme should not be misleading. Investors will discover quickly if you misrepresent your location. Inaccurate advertising creates negative perceptions and resentment that are difficult to overcome.

To be effective, the theme must be consistent. The central marketing message must extend beyond advertising and be reflected across the full range of promotional activities.

Step 3. Select and Develop Promotional Tools and Integrate the Marketing Mix:

Once you have determined your marketing message, you must select the appropriate promotional tools to deliver that message. Determining the right tool to use is driven by your stage in the investment promotion cycle.

Informational Tools. Information tools include informational brochures, sector studies, fact sheets, newsletters, CD-ROMs, the Internet, and videos. The advent of CD-ROMs and the Internet have not eliminated the need for less technologically sophisticated tools such as informational brochures.

Public Relations. A public relations campaign is a low-cost way to generate favorable and highly credible media coverage. Public relations activities should be conducted both internationally and domestically.

Seminars and Conferences. If planned well, these events allow the investment promotion intermediary to reach target investors directly. They can be time-consuming to plan, however, and they create a negative impression if they are not well organized.

Advertising. Advertising campaigns have been a successful image-building technique for many countries. Advertising is extremely expensive, however, and the campaign must be tightly focused on target markets, if it is to be cost-effective.

(Source: http://www.fdipromotion.com)

Assignment 7. Supplement your draft with additional materials, prepare visuals and present your image-building campaign to other groups.

Date: 2015-09-23; view: 400; Нарушение авторских прав