Governments in countries such as Poland seeking new infusions of capital, technology, and know-how willingly provide incentives: tax exemptions, tax holidays, subsidies, loans, and the use of property16 Because they both decrease risk and increase profits, these incentives are attractive to foreign companies. One study surveyed 1.03 experienced managers concerning the relative attractiveness of various incentives for expansion into the Caribbean region (primarily Mexico, Venezuela, Colombia, Dominican Republic, and Guatemala). The results indicate the opinion of those managers about which incentives are most important; however, the most desirable mix would depend on the nature of the particular company and its operations. The first two issues reflect managers' concerns about limiting foreign exchange risk, where restrictions often change overnight and limit the ability of the firm to repatriate profits. Other concerns are those of political instability in countries such as Haiti and Nicaragua, the possibility of expropriation, and those of tax concessions.
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