Strategies to Survive Under ISI
- Take Advantage of Low Interest Loans (Leverage)
- Negotiate Favorable Tax Treatment
- Use Short-term Horizon to Evaluate Projects
- Use Transfer Pricing to Avoid Taxes and Profit Repatriation Restrictions
- Plan Obsolescence to Take Advantage of Short-term Tax Benefits (e.g. Build a Factory and Plan to Abandon It When Tax Benefits Run Out)
- Match Market to Import/Export Restrictions
- Price Below Transfer Price (i.e. Dumping)
- Target Govt. Prioritized Industries
- Hire a Local Lawyer with Connections
- Choose Most Beneficial Type of Entity
- Train Local Staff (Nationals) to Take Over Roles of Ex-patriots at Much Lower Wages