Foreign Direct Investment Of India

Countries would participate in foreign direct investments because it helps in the economic development of the country where the investment is being made. They also engage in FDI to reduce production costs.

According to Eryigit (2012), “Foreign direct investment (FDI) is defined as establishing a new company or branch of a foreign company by foreign investor or share acquisitions of a company established in host country (any percentage of shares acquired outside the stock exchange or 10 percent or more of the shares or voting power of a company acquired through the stock exchange”. According to Fadli, Norazidah, Rhaudhah, Nurul, Salwani and Kamaruzaman (2011), stated that Malaysia one of the developing country that being openness to foreign country in order to attract foreign investor to maintain an accelerate growth to this country. They also stated that foreign direct investment plays an important role in capital formulation and economy growth

Foreign Direct Investments are long term capital holdings directly invested in one country by another country. These foreign direct investments can be either outwards or inwards. The outward foreign direct investment is also referred to as investments abroad and is usually supported by the government against various types of risks associated with the investment1. It is also able to enjoy various types of incentives such as tax incentives. These are usually the investments invested by the country in to a foreign

Foreign Direct Investment is ownership in a global company which is controlled by a company in base country (Dunning 2000). FDI is having some purposes which are company exact-benefit, struggles removal, and global strategy formulation. FDI is giving three advantages such as internalizing advantages, location advantages, and ownership advantages. Zara has advantages in ownership which support its global development. Zara wants to have full control of its company globally, which is one of the advantages of location by Zara. By doing this Zara can get information about all country and get knowledge from it. Last but not least, internalizing gives Zara about some insight and information for its market entry globally (Polo & Flavian 2000; Dunning 2000).

An added benefit of foreign direct investment is that it helps the balance of payments of both capital and current accounts of the host country.

The disadvantages of foreign direct investment occur mostly in case of matters related to operation, distribution of the profits made on the investment and the personnel. There is a chance that the Domestic companies may lose their ownership to overseas company

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.

Foreign direct investment (FDI) is the movement of capital across national frontiers in a manner that grants the investor control over the acquired asset. Thus it is distinct from portfolio investment

FDI is understood as capital investments in real assets (production) in other countries, which participates in the management of the investor.

Investments can be categorized as Foreign Direct Investment (FDI) and Foreign Indirect Investment (FII), where Foreign Direct Investment is venturing into an economic activity outside the economy of the investor. It is referred to as Direct Investment because the investor whether as a person or as a company has a direct long term interest in another country's company either through purchase or building and getting involved in the management and control of the operations. An investment qualifies as an FDI when the investor has acquired the voting rights by obtaining 10% of the issuer's common stock.

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

Foreign direct investment has many forms. Broadly, foreign direct investment includes "mergers and acquisitions, building new facilities, reinvesting profits earned from overseas operations and intra-company loans".

Foreign Direct Investment is the direct investment in new facilities or companies to expand a business in a new country. In evaluating and analyzing East Asia, it is important to focus on cultural issues as they are major indicators of the business environment and implementation in a given local. East Asia, including China, only began opening up for foreign investment in the 1970s. Japan is considered a developing market, where the rest of Eastern Asia is an emerging market, the majority of FDI around the world is targeted to developing nations due to increased stability, consumer culture, and large markets. The risk of emerging markets is greater than in developed, thus yielding a greater return on investment when the endeavor succeeds.

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.

Foreign Direct Investment (FDI) is a major or key element in international economic integration. Foreign Direct Investment creates a stable, direct and long lasting connections between economies. It therefore encourages the transfer of technology know how between countries and allow the host country to promote its products more widely in international markets. It is also and additional source of funding for investments and it can also be an important form of development. Foreign Direct Investment is an investment in a business firm by an investor from another country in which the foreign investor has control or a significant degree of influence over the company or firm. The Organization of Economic Cooperation and Cooperation