All this is OK as long as the government works in the interest of its citizens.
And imagine a situation where the government of a country (unfortunately, the one where I live) gives subsidies to foreign investors, so much so that foreign investors, in addition to taking profits from the country, do not have any costs towards the employees, and all with the aim of the false appearance of reducing the unemployed and cheap political points, but expensive for the citizens...
It is precisely because of this kind of government that the protests in Serbia continue. Parliamentary elections await us tomorrow. If nothing changes, maybe I will become one of those foreigners who will look for a job in your country...
I gave one example, asked Gemini to summarize for me, because there are many facts.
"The most stark example of a foreign investor profiting at the expense of Serbian taxpayers—only to pack up and leave as soon as the mandatory period expired—is the Italian footwear manufacturer Geox in Vranje.
The Numbers & Facts
Direct Cash Subsidies: The Serbian government granted Geox between €11.2 million and €12 million in direct subsidies to open a shoe factory and hire roughly 1,200 workers.
Free Infrastructure: On top of the cash, the local government and state provided free land in the industrial zone and fully funded the ground leveling and utility connections.
Contractual Obligation: Geox was required to keep the factory open and maintain employment levels for a minimum of 5 years.
The Exit: In August 2021—immediately after the 5-year obligation period expired—Geox declared liquidation, shut down the plant overnight, and left Serbia, leaving over 1,200 workers jobless.
Why Is This an Economic Absurdity?
The State Covered Their Payroll:
With a subsidy of around €10,000 per job created, and workers receiving near-minimum wage (around €3,500–€4,000 net annually at the time), taxpayers effectively paid full salaries for all 1,200 employees for almost 3 out of the 5 years they worked there.
Zero Financial Risk for the Investor:
The private owner bore almost no operational risk. The state provided the land, paid for the infrastructure, and subsidized most of the labor costs, while Geox kept all profits from selling the footwear abroad.
Total Loss for Taxpayers:
Once the contractual period ended and no more free money was available, Geox moved on to cheaper locations. Serbian taxpayers lost over €12 million, the city of Vranje was hit with a major unemployment shock, and no lasting industry was built."
RE: Cost of Efficiencies