Introduction

Abstract

Governments across the world have removed restrictions on FDI in order to improve their ability to attract the investment of MNCs. Inward investment is increasingly seen as vital for economic development and growth, and to further encourage companies to invest in their country or region a wide range of investment incentives are offered to MNCs by governments. The incentives on offer to multinationals are increasingly ‘negotiatable’. The amount of incentives awarded to companies is therefore determined to a large extent by a bargaining process between the government agency with reponsibility for incentives and the multinational company.