As an incentive to encourage domestic firms to undertake FDI,many countries have

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Eliminating double taxation of foreign income provides a tax advantage to domestic firms investing abroad, reducing the overall cost of FDI and making it more attractive. This serves as an incentive to encourage domestic firms to invest overseas. However, imposing local content requirements, higher import tariffs, abolishing the use of custom duties, and eliminating subsidies could discourage FDI by increasing the cost of doing business and lowering the potential return on investment.

As an Incentive to Encourage Domestic Firms to Undertake FDI,many