Referring to expanse on of intra-industry trade and provide critical evaluation (benefits and costs) of FDI incentives on production structure and on development of a host country in Asia in terms of employment and income generation. Comment on the role of host government policies: on value creation, local ownership requirement, market layers, and local content requirement. i.e. the use of rules of origin for industrial development, what would happen if there was a rapid increase of (a) prices of natural resources, (b) general wage rate and (c) the currency value of the host country?