Foreign direct investment: Problems and challenges in the present corporate world
Summary :
Table of Contents
- Introduction
- Nature of trade and investment
- Types of foreign investment in India
- Foreign direct investment
- Wholly owned subsidiary
- Joint venture
- Acquisition
- Portfolio investment
- Investment by FIIs
- Investment by GDRs, FDRs, FCCBs
- Factors influencing international investment
- Resources factors
- Market factors
- Efficiency factors
- Causes of growth of foreign investment
- Dispersion of foreign direct investment
- Nature of foreign investment in India
- Foreign investment by Indian companies
- Bibliography
- Conclusion
Abstract
In the present emerging global economy, the nature of the foreign investment has to be generally motivated by various favorable business environments accelerated by globalization, liberalization as well as privatization of capital flows which have been growing rapidly. Also the cross-border M&As have been seen as pivotal in the recent surge in the foreign direct investment. Accordingly, the international capital flow contributes a great role of the domestic investment, employment generation, industrial production and even the export in various global economies including India. Even though, there are only two globally recognized foreign investment via, foreign direct investment, as well as portfolio investment, it has also been followed by three main global economic motives of the foreign direct investment like: resource factor as well as marketing factor and efficiency factors. However, the main objective of this paper is to stage on how the Indian government has substantially liberalized its nature of foreign investment policy, even though the foreign direct investment inflow into the Indian economy has been discouraging.
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