Benefits or Tax holiday: Tax incentives are seen as major player in a company's decision to locate their new facility. Malaysia launched its multimedia supercorridor (MSC) project, which is intended to create a high-growth multimedia/information centre concentration. The following year, Indonesia introduced tax concessions for microchip manufacturers. In September 1999, the Philippines' government announced a 12-year holiday for projects that will produce raw materials for the electronics industry; the measure was targeted specifically at wafer fabrication projects and was intended to align the Philippines' incentives with those of Taiwan and Singapore. [3]

China set out new policies to encourage foreign investors to develop and create technology, providing special tax incentives over and above the usual tax holidays. Competition became still more heated in the year 2000. In March 2001, Thailand's Board of Investment announced a new policy to attract electronics manufacturers; in May, India, which had taken an early lead in software development with its special facilities in Bangalore, announced major tax breaks to aid the country's knowledge-based sectors. Biotechnology and pharmaceutical companies are to receive a 10-year tax holiday on earnings from research and development, and the tax exemptions for software technology parks are to be increased[4]. Singapore announced incentives for e-commerce and start-ups of Internet businesses and, in July, China introduced new incentives for software and integrated circuit development.

Special grants: In order to attract MNC, government may offer special grants to the companies. This grant may be hard cash or some help with building infrastructure like machinery or building. In May 2000, Intel opened talks with the government of Israel regarding the possible location of a manufacturing facility, was at that time country's largest single FDI project (USD 3.5 billion). Intel was reportedly seeking a "grant package" worth USD 600 million.
California offers a six percent credit for the costs of tangible personal property used for R&D, while Montana assesses R&D assets at a lower rate. New York offers several incentives for infrastructure development, including: a seven percent credit for qualified R&D property.

Relaxed rules & regulations: Openness and non-discrimination characterize Denmark FDI laws and policies. There are no general screening provisions for Inward Direct Investment, nor specific regulations for companies located in Denmark with regard to foreign exchange control systems. Foreigners are free to buy real estate for business and primary residence purposes. In an effort to further enhance the Romania's investment climate, the Government granted full exemption on equity and export conditions for foreign and local manufacturers involved in new projects.