One method host countries can use to promote FDI inflows are financial incentives.
Tax incentives and/or low-interest loans to attract investment are common incentives.
But if bidding wars arise between locations competing for the investment, the cost of the FDI for taxpayers may be more than what the actual jobs will pay.
Other methods to promote FDI inflows include infrastructure improvements.
Lasting benefits for communities in the host nation can arise from local infrastructure improvements—including better seaports for containerized shipping, improved roads, and advanced telecommunications systems.