Government host policies are not likely to increase a country's political and economic risks when

there are threats from piracy and lack of protection for the company's intellectual property.

there is new onerous legislation or regulations on foreign-owned businesses.

the national government is unstable or weak.

there is distress in the country's monetary system.

incentives such as reduced taxes, low-cost loans, and site-development assistance are provided to companies agreeing to construct or expand production and distribution facilities.