Question:

(a) Illustrate the differences between inter and intra industry trade.

(b) Foreign Investors generally tend to adopt a two-stage process when evaluating countries as investment locations. First phase involve screening potential investors based on economic fundamentals. In the second phase, those countries which pass the first phase are evaluated based on the incentives they offer. Various studies have concluded that the most commonly used inducements are fiscal incentives. Enumerate and explain the specific objectives of fiscal incentives