Need of Industry

Policy Instruments

FDI Investor characteristics

Capital

Technology

Managerial

Skills

Ownership restriction

Capital flow Restriction

Repatriation restriction

P

S

S

×

Ÿ Having large capital to invest

Ÿ Able to raise large capital at low cost

S

P

S

×

×

Ÿ Developed superior technology

Ÿ Less capital is required

S

S

P

×

×

×

Ÿ Interested in market penetration, integrating global operation

Ÿ Possessing superior managerial skills