Trade-Related Investment Measures

Governments use a number of instruments to control both foreign and domestic investment. These regulations can be precautionary (for example banks, insurance companies) and may apply equally to domestic investment, or they may be downright protectionist (for example by refusing to issue investment permits to foreign competitors). Governments can also discourage investment by confining foreign ownership within certain shareholding limits or activities, or by curtailing the repatriation of capital, profits and so on. At the other extreme governments provide substantial incentives for investment, whether in the form of direct subsidies, tax reductions, free greenfield sites, help with training and so on.