Akureyri Region Business Agency
Akureyri Region Business Agency   
Merry Christmas

Comparing investment locations
several factors need to be studied

Risk tolerant companies will locate in unstable countries if they can cut costs. We have had companies considering Russia (cheap power from gas) and China (cheap labor and housing), as alternatives to our region. While most companies in mature businesses value the stability we offer, companies that have already plants in politically stable countries might be tempted to locate in the unstable countries to cut costs, even if it means higher risk.

Furthermore, with stronger trading blocs, such as the EU, countries have less flexibility with regard to incentives offers. High incentives and grants in one country might be seen as a trade barrier to other countries. Therefore, there are strict rules on what can be offered. The rules apply mostly to hard incentives such as grants, subsidies and tax-breaks.

However, we make our locations auspicious by soft incentives, such as loan guarantees, all kinds of assistance and aftercare programs. This can mean assistance with setting up facilities or hiring staff and sharing cost/paying for initial research. Furthermore, we can lower the entry cost by cutting red tape and facilitating companies in negotiations with e.g. environmental agencies and suppliers.

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Akureyri Region - Business Agency
Skipagata 9 ? 600 Akureyri ? Iceland ? Tel. (+354) 460 5700 ? Fax (+354) 463 0998
E-mail ? Homepage afe.is