The measures adopted by governments to attract and
regulate foreign investment include fiscal incentives,
tax rebates and the provisions of land and other services
on preferential terms. In addition, governments impose
conditions to encourage or compel the use of investment
according to certain national priorities. Local contents
requirements, which require the investor to undertake
to utilize a certain amount of local inputs in production,
are an example of such conditions. Export performance
requirements are another example; they compel the investor
to undertake to export a certain proportion of output.
