Foreign Direct Investment Fdi Policy

FDI allows the home country to invest into the host country to produce, advertise, and distribute products, in order to upsurge their market share and provides a long-term investment and enhancement. (Moosa, 2002)

FDI's have myriad advantages for the company in India. FDIs engage in what is termed as foreign investment, which connects its goods and services to the mother country. The Dutch East India Company is a US-based facility and business. The growth and development of the company has been

Dr. Swapna S. Sinha swapnassinha@yahoo.com Dr. David H. Kent dkent@ggu.edu Dr. Hamid Shomali hshomali@ggu.edu Ageno School of Business Golden Gate University 536 Mission St. San Francisco, CA 94105 Tel: 415-442-6500

FDI has broadened its meaning into the acquisition of a lasting management interest in a firm outside the investing enterprise’s home country. For the reason above, it comes in different forms which include direct acquisition of foreign companies, construction of a factory in a foreign country and investment in joint ventures. Britton and Worthington (2009) described FDI as an important aspect of globalisation as well as the activities of multinational companies.

In the last few years, the emerging market countries such as China and India have become the most favoured destinations for FDI and investor confidence in these countries has soared. As per the FDI Confidence Index compiled by A.T. Kearney for 2005, China and

Several sources (Aswathappa, 2012; Jensen, 2012) have identified FDI as an investment, made by a company based in one country (home country) into another company, which is based in other country (host country), in order to obtain certain degree of management control over that company.

The title of this report is “FDI by FDI”, which was phrased by the new prime minister of India, Mr.

The Foreign Direct Investment (FDI): is to invest and build new business in other country (Wild, 2015 ). OECD defines FDI as a key factor of enhancing and promoting the development of economy and stability of the country in the political and financial sector to improve the society as a whole (OECD , 20). Moreover, The UNCTAD explains the FDI by mentioning it as a relationship between two companies which means one company is going to do business in the other company as an investment (UNCTAD, 2007). It is making a new business, investment or company in a foreign country.

The research aims to find out the impact of FDI on economy of the country and current trend of FDI in retailing sector of India with specific reference to E-Commerce. This section presents the discussion of various authors and researchers on the topic of research. The section start with defining concept of FDI and presenting its impact on economy. As the case of retail sector of India is considered to understand the impact of FDI , recent trend of FDI in India and its impact on economy is discussed. Further the retail sector with specific reference to E-commerce sector is discussed in light of FDI and the trends, advantages and disadvantages associated with the FDI in E-commerce sector is

The topic of my dissertation is about the determinants of foreign direct investment (FDI) in developing countries. With the trend of economic integration, FDI has been considered as an important part of boosting the economic development within any country around the world. Foreign direct investments differ entirely from indirect investments such as portfolio management.The direct way of investing in a foreign country can be conducted in a number of ways—either by establishing overseas controlled corporations, or associate company abroad, by obtaining shares of an multinational company, or though a joint venture.

Foreign direct investment has long been a subject of sensitivity around the world (Moran 2012). As the largest investor and the largest recipient of foreign direct investment, the Unites States has important economic, political, and social interests in the development of international regulations regarding direct investment (Jackson, 2013). As a sovereign state, the United States has sought to curb its embraces of open markets and free capital flows with protection of national security interests. In this section, I will first introduce the Organisation for Economic Cooperation and Development’s (OECD) basic statement of foreign investment, and then turn to the discussion of U.S. policies on foreign direct investment. This section ends with

Ekpo, A.H. (1995) investigated that the element like higher gain from investment, low labor and production cost, political stability, enduring investment climate, official infrastructure facilities and helpful regulatory atmosphere also serve to invite and guard FDI in the host country.Chadee and Schlichting (1997) investigated some of the aspects of FDI in the

It could also be stated that the Indian economy is emerging in nature and provides a greater platform for the companies to enter and establish in the same. With the help of FDI in the developing countries, the nation has been experiencing an adequate growth associated with the industrial as well as infrastructural related. It has also notified that during 1990 -2000 the concept of inward FDI has gain huge prominences regarding the development of Indian economic condition. It has also observed that post-independence Indian government has continued with the application of FDI investment scheme. In the year 1991 after the launching of New Economic Policy, the concept of FDI has gained considerable importance in Indian economy.

The government is also relaxing FDI norms in other sectors for foreign investors to invest. FDI in multi-brand retail has been allowed up to 51 per cent. The minimum requirement for the FDI is US$ 100 million, of which at least 50 per cent must be invested in 'backend infrastructure' within three

FDI can make a positive contribution to a host economy by supplying capital, technology and management resources that would otherwise not be available. Such resource