Political

Political stability or uncertainty Attitude of the host government towards private enterprise and, in particular, to foreign private investment Special inducement for foreign investors, such as tax holidays grants, loans at favourable rates, tariff protection for newly established industries Membership of a free trade area, or trade agreements with other countries that might offer export opportunities

Legal
Legal discrimination against foreign companies or their expatriate employees Percentage of company that may be foreign-owned Patent protection laws and ease of enforcement Trademark protection Price control legislation Restriction on trade practice legislation

Costs
Cost increases resulting from smaller scale production, product modification to meet market needs, etc. Wage costs, related to productivity Availability and cost of local raw materials and components Availability and cost of transport services Freight, packing and insurance savings, if product previously exported to the country

Exchange Control
Restrictions on remittances to parent company, e.g. Maximum percentage of foreign capital invested Restrictions on repatriation of capital Convertibility of local currency

Taxation
Existence of a double-taxation agreement between the host country and parent-company country Withholding tax payable on remittances to parent company Level of company taxation Method of calculating depreciation allowances, stock valuation, etc.

Finance
Local sources of capital and interest rates payable External sources of capital Local accounting requirements and conventions Rate of inflation

Personnel
Availability of labour, e.g. skilled, unskilled and clerical Availability of local managerial talent Percentage of employees who must be local nationals Availability of work permits for expatriates Living conditions for expatriates. E.g. Housing, education, medical facilities, etc. Labour laws and regulations, especially regarding the appointment and dismissal of staff Industrial relations, trade unions, worker participation in management Existence of compulsory profit-sharing schemes for employees