ABSTRACT
This chapter examines the range of incentives that some of the countries in the region offer. It shows that even tougher competition to attract foreign direct investment has resulted in very generous incentive packages for investment that accords with host country priorities. The Latin American countries of Chile and Peru also provide incentives for firms locating in underdeveloped areas. Competition for foreign investment in priority industries is most intense in the Association of Southeast Asian Nations region. Korea, Taiwan and Singapore pioneered the use of investment incentives in earlier stages of their industrialisation and all three countries have continued this practice in attempts to upgrade their technological capabilities to developed country standards. The competition for investment that occurs in the region is the attempts by some of the smaller but more developed members to promote themselves as a suitable base for establishing regional headquarters.
