MOTIVATION OF FOREIGN INVESTORS AND TAX INCENTIVES OFFERED BY THE HOST COUNTRIES

Private international capital movements during the last two decades can be characterized by two outstanding features. On the one hand, there has occured a missive flow of investment capital from the USA to Western Europe and that current is still very strong today. On the 'Other hand, only insignificant amounts of private capital has trickled into the less developed countries and the prospect that private foreign investments could contribute significantly to the economic progress of the lowincome countries is very dim.