...ABOUT FOREIGN DIRECT INVESTMENT Foreign direct investment (FDI) is a direct investment into production or business in a country by a company in another country, either by buying a company in the target country or by expanding operations of an existing business in that country. Foreign direct investment is in contrast to portfolio investment which is a passive investment in the securities of another country such as stocks and bonds. 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". In a narrow sense, foreign direct investment refers just to building new facilities. The numerical FDI figures based on varied definitions are not easily comparable. There are basically three types of FDI, these are: 1. Horizontal FDI arises when a firm duplicates its home country-based activities at the same value chain stage in a host country through FDI. 2. Platform FDI 3. Vertical FDI takes place when a firm through FDI moves upstream or downstream in different value chains i.e., when firms perform value-adding activities stage by stage in a vertical fashion in a host country. The foreign direct investor may acquire voting power of an enterprise in an economy through any of the following methods: * by incorporating a wholly owned subsidiary or company anywhere * by acquiring shares in an associated enterprise ...
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...of Foreign Direct Investment in India & China !! Vivek Bhurat (MBA) # 3-4-1013/22, Flat No. 201, Vijetha Sai Mohini Apts., Barkatpura, Hyderabad - 500027. Mobile : 9000400076, E-mail : svivekbhurat@gmail.com Abstract The purpose of this article is to highlight the important determinants of FDI inflow in India & China. This article attempts to answer the question: "What are the important factors attracting FDI inflow in China then that of India?" It is concludes that market size, population, low labor cost, quality infrastructure, open policies to international trade, economic policies, tax policies, etc. are important factors of FDI inflow. Theoretically, it will fill the gap in the literature and help to the economists and investors to understand the This study aims to helps to know the future of india in terms of development in reference to Foreign Investment. The changing trends in the government & economy of india have been the indicators of development of India. The main objective of this study is to compare the flow of FDI in INDIA & CHINA and to bring the revolution in the development of india by the schemes taken by india to attract foreign investment. The crucial step in this revolution is the campaign “Make in India” an intiative by Shri Narendra Modi, Honourable Prime Minister of India. This paper also highlights the foreign direct investment (FDI) policy under the campaign “Make in India”. Introduction India & China has the...
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...A. 1. FOREIGN DIRECT INVESTMENT TRENDS AND DEVELOPMENTS RECENT TRENDS IN FOREIGN DIRECT INVESTMENT INFLOWS AND OUTFLOWS Global trends 15 Following what seemed to be a swift recovery from the global financial crisis in 2010-2011, global foreign direct investment (FDI) inflows have again taken a downward turn. As the world economic recovery continues to be uncertain and fragile, global FDI inflows have declined by 18%, from $1.65 trillion in 2011 to $1.35 trillion in 2012. Inflows decreased both in developed and developing economies.16 However, while the majority of developed countries experienced a significant reduction in their FDI inflows, by 32% on average, those to developing economies remained relatively resilient, declining by only 4% on average. More importantly, for the first time developing economies alone absorbed more FDI than developed countries, accounting for 52% of global FDI inflows (figure 3.1). Asia-Pacific Trade and Investment Report 2013 FIGURE 3.1 1400 1200 Billions of United States dollars 1000 800 600 400 200 0 2003 Foreign direct investment inflows to developed and developing economies, 2003-2012 2004 2005 2006 2007 2008 2009 2010 2011 2012 Developed economies Developing economies Source: ESCAP calculations, based on UNCTADStat. FIGURE 3.2 2000 Billions of United States dollars 1800 1600 1400 1200 1000 800 600 400 200 0 2003 2004 2005 2006 Foreign direct investment outflows from developed and...
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...Economic Relationship of Canada and India Even with the opportunities afforded by an average annual growth rate of approximately 8 percent in India, Canada is not well represented in this expanding economy. Currently, India represents less than 0.5 percent of Canadian exports and less than 1 percent of Canadian imports (Foreign Affairs and International Trade Canada). Moreover, India, as a destination, represents less than half a percent of Canada’s total FDI outflows. It should be noted however that services are notoriously difficult to measure and that these statistics may not be truly representative of Canada’s involvement in the India economy. The Asia-Pacific Foundation of Canada (APFC) estimated in 2002 that Canadian firms sold $336 million in commercial services to the Indian market, which is about 2.5 times greater than the value reported by Statistics Canada. Also, in a limited sample of 43 Canadian companies, the APFC reported that investment into India from Canadian firms represented $284 million, which is about twice Statistics Canada’s reported value. The discrepancy in these statistics could be due to investment originating from Canada flowing through a third-party country prior to entering India and to the difficulty in reporting the trade in services. An example of this would be the case of Mauritius, which recorded 12 times more investment in India as Canada. However, the majority of investment originating from Mauritius is...
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...Direct Investment in India | The fast and steadily growing economy of India in majority of its sectors, has made India one of the most famous and popular destinations in the whole world, for Foreign Direct Investment. India's ever-expanding markets, liberalization of trade policies, development in technology and telecommunication, and loosening of diverse foreign investment restrictions, have further collectively made India, the apple of investors' eye, for most productive, profitable, and secure foreign investment. According to a recent survey by the United Nations Conference on Trade and Development (UNCTAD), India has conspicuously emerged out as the second most popular and preferable destination in the entire world, after China, for highly profitable foreign direct investment. In recent years, bulk of the foreign direct investment in indian business sectors of infrastructure, telecommunication, information technology, computer hardware and software, and hospitality services, have been made by investors of countries like US, UK, Mauritius, Singapore, and many others. Global Jurix, one of the leading full-fledged legal organizations of India with global repute, has been helping companies, business corporations, organizations, and other potential investors of countries all around the world, in making foreign direct investment in indian business sectors, in various ways described in the section below. | FDI - Inbound and Outbound | The Foreign Direct Investment (FDI)...
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...strong. Countries like India have new forms of tourism, new reasons why people come here. An example would be Medical Tourism. Medical Tourism in India has attained huge proportions with the development of health facilities. Since then the proportion of people visiting India for medical reasons has been on a rise. This is because the medical treatment here 25 percent less expensive than other countries. In India most of the people in the services sector speak English and the language barrier is another factor that allows foreigners to consider India as a Viable option for their medical treatment. The health and wellness tourism in India is also at a huge growth for the high quality services offered. The Indian tourism sector is a good example of the multiplier effect, which is when the success of one type of industry which in this case is tourism attracts other forms of economic development and creates more jobs, for example in shops, hotels, restaurants and bars, and also as guides and instructors. The GOI is allowing 100% investment into Hotels and Tourism. This means there will be a lot of overseas investment in airports, roads and hotels. This investment will be good, as new chains will open here, more flights, more accommodation, and better transport. These reasons will increase tourism even more. In the next 5 years 8-10 billion dollars are being invested in the tourism sector. India has significant potential for becoming a major global tourist destination and this is a big...
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...History of Indian economy Economic history of India begins with the Indus Valley civilization. The Indus civilization's economy appears to have depended significantly on trade, which was facilitated by advances in transport. The political unity and military security allowed for a common economic system and enhanced trade and commerce, with increased agricultural productivity. During this1500 period, India is estimated to have had the largest economy of the ancient and medieval world between the 1st and 17th centuries AD, controlling between one third and one fourth of the world's wealth . India has followed central planning for most of its independent history, which have included extensive public ownership, regulation, red tape, and trade barriers. After the 1991 economic crisis, the central government launched economic liberalization. India has turned towards a more capitalist system and has emerged as one of the fastest growing large economies of the world. CURRENT INDIAN ECONOMY: The Indian economy has continuously recorded high growth rates and has become an attractive destination for investments. A. Indian economy is expected to grow at around 7.5 per cent B. The overall growth of gross domestic product (GDP) at factor cost at constant prices was 8.5 per cent in 2010-11 representing an increase from the revised growth of 8 per cent during 2009-10. C. Growth in the Index of Industrial Production (IIP) was 4.1 per cent during August 2011...
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...Content 1. Content 2 2. Scope 3 3. Tourism market in India 3 3.1 Kerala Tourism 5 4. Market Structure 9 5. Conclusion 11 6. References 12 Scope Indian tourism industry is growing at a rapid rate with foreign visitor arrivals reaching a record 0.5 million in 2010, resulting in international tourism receipts of USD 3.8 billion. Tourism is a great foreign exchange earner for India accounting around 3-4 % of GDP. It also makes a direct contribution to economy with significant linkages with agriculture, horticulture, handicrafts, food, transportation, medicine and construction. India’s culture and the slogan “Atithi Devo Bhavah” targeted at the inbound foreign tourists in the country, is paying huge dividends. This assignment aims at analyzing the market structure in tourism industry and the specialties of Kerala tourism. This also analyses the competition and the market potential available in Tourism sector, Medical tourism, spiritual tourism and Adventure tourism are not considered here. Tourism market in India The foreign tourist arrivals in India has seen tremendous growth from 90’s to 2010, it has increased to six hundred thousand visitors in 2010, Main reason for this increase has been following fundamental factors: ❖ India’s economic growth and newly found image. ❖ Opening of tourism sector to private sector/ foreign investment. ❖ Better relationship with Western countries. ❖...
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...TOURISM IN INDIA: Travel and tourism is the largest service industry in India. It provides heritage, cultural, medical, business and sports tourism. The main objective of this sector is to develop and promote tourism, maintain competitiveness of India as tourist destination and improve and expand existing tourism products to ensure employment generation and economic growth. India has become a popular tourist destination with thousands of people visiting different parts of India each year. Tourism in India has shown a phenomenal growth in the past decade. One of the reasons is that the Ministry of tourism, India has realized the immense potential of tourism in India during vacations. India travel tourism has grown rapidly with a great influx of tourists from all across the globe who have been irresistibly attracted to the rich culture, heritage, and incredible natural beauty of India. India offers luxury travel to its travellers and tourists. Almost all the cities in India have something to interest tourists. India tourism with its foggy hill stations, captivating beaches, historical monuments, golden deserts, serene backwaters, pilgrimage sites, rich wildlife, and colourful fairs capture the heart of every tourist. In addition, a variety of festivals, lively markets, vibrant lifestyle, and traditional Indian hospitality, makes one's experience as an Indian tourist truly unforgettable and fantastic. Some of the major tourist destinations in India are the Himalayas, Agra...
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...strategically important parts of the world, tailored analytical products, regular member briefings, regional events and other services. Global Business Policy Council A.T. Kearney, Inc. 8100 Boone Boulevard Suite 400 Vienna, Virginia 22182 U.S.A. 1 703 891 5500 telephone www.atkearney.com I n the two years since A.T. Kearney released its last Foreign Direct Investment Confidence Index, the global economy has faced unprecedented turmoil—a housing market collapse, a banking system teetering on the edge, rising unemployment and falling sales across almost all industries. In the 2010 FDI Confidence Index®, we examine the future prospects for international investment flows in the context of these tumultuous times. While conditions have improved, senior executives at the world’s largest companies remain wary of investing during the current climate, and few expect a full turnaround before 2011. Amid the economic downturn of the past two years, several emerging markets remain attractive to foreign investors. China, India and Brazil are in the top five of the 2010 Foreign Direct Investment (FDI) Confidence Index, while emerging markets with large consumer bases, such as Indonesia and Vietnam, also rank highly. However, some smaller, more open emerging economies dropped in the rankings. For example, Hong Kong, a globalized economy according to the A.T. Kearney Globalization Index, fell to 14th.1 In Asia, investors are...
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...1.0 Introduction We should to first know outsourcing Definition: The practice of having certain job functions done outside a company instead of having an in-house department or employee handle them; functions can be outsourced to either a company or an individual (encyclopedia, 2012) in business. Outsourcing is a practice which involves transferring parts of a company’s business processes to outside suppliers rather than completing it internally (Investopedia, 2013). It is the process of subcontracting a process, such as product design or manufacturing to a third party company (Venture Outsourcing, 2013). Outsourcing could be sub-divided into two which is off-shoring and home-shoring (home sourcing). Off shoring is moving business processes overseas in order to leverage opportunities such as cheap labour expenses, entrance into new markets, skilled labour and availability of resources (Sourcing Mag, 2003). Home shoring (home sourcing) on the other hand, is “the transfer of business processes to companies within the same country” (Brunelli, 2013). The form of outsourcing to be analysed in this report is off shoring because it is one of the effects of Globalization. Outsourcing became popular in the United states as at 1980s when critics began to raise eyebrows about it as they felt multi-national corporations (MNCs) where exporting a large portion of American jobs to other countries (handfield, 2006). Some MNCs that were popularly known and criticized for outsourcing were...
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...Foreign Direct Investment in India India is the largest democracy and is fourth largest economy (in terms of purchasing power parity) in the world. India with its consistent growth performance and abundant high-skilled manpower provides enormous opportunity for investment, both domestic and foreign. Investment in India can be made both by non-resident as well as resident Indian entities. Any non-resident investing in an Indian company is Foreign Direct Investment (FDI). The Government embarked upon major economic reforms since mid-1991 with a view to integrate with the world economy, and to emerge as a significant player in the globalization process. Reforms undertaken include decontrol of industries from the stringent regulatory process; simplification of investment procedures, promotion of foreign direct investment (FDI), liberalisation of exchange control, rationalization of taxes and public sector divestment. The FDI policy was liberalized progressively through review of the policy on an ongoing basis and allowing FDI in more industries under the automatic route. A number of studies in the recent past have highlighted on growing attractiveness of India as an investment destination. According to UNCTAD’s World Investment Report 2007, India is the second most attractive investment destination for FDI for 2007-09. India has one of the most liberal and transparent policies on FDI among the emerging economies. FDI up to 100 percent is allowed under automatic route in all...
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...Report Postal System in India The postal system is controlled by India Post, a government-run service. It is reasonably cheap and generally quite reliable, although there might be occasional delays during festivals. It usually takes up to three days for a letter to be delivered within the country. Mail is collected once or twice a day. The postal service can be used to send letters and parcels nationally and internationally. It also offers a range of additional services, such as banking, because of its extensive reach across the country. In big cities, each postal district will have its own post office. Opening hours can vary from one office to another, but post offices are generally open from 9:00 or 10:00 until 18:00 or 19:00. Postal Codes A postal index number, commonly referred to as a PIN code, comprises six digits. There are eight PIN regions in the country, which are divided into geographical areas (a ninth PIN relates to the Army Postal Service). The PIN region is indicated by the first digit, while the next two refer to the sub-region/sorting district. The final three digits represent the post office responsible for delivery. For example, the pin code of Ashok Nagar in Delhi is 110018. Registered Mail India Post makes it possible to register a letter or parcel in order to keep track of it. To send a registered letter or parcel, the relevant form must be filled out at a post office. There is a special counter at post offices for registered mail. The customer...
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...where they are living. In India, brain drain is more because educated individuals are emigrating for higher wages and better opportunities. It has been in our consciousness since 30 years and many bright youngsters have emigrated mainly to US from early 1960s onwards including a large fraction of the graduating class at IITs in India. Advantages The money the emigrants have sent back home has helped in alleviating poverty in their homes. It has resulted in less child labor, greater child schooling, more hours worked in self-employment and a higher rate of people starting capital intensive enterprises. The money remittances have also reduced the level and severity of poverty. Moreover, the money migrants sent back are spent more in investments such as education, health and housing, rather than on food and other goods. Disadvantages Due to the influence of brain drain, the investment in higher education is lost as the highly educated person leaves India and becomes an asset to other country. Also, whatever social capital the individual has been a part of is reduced by his or her departure. With all the college graduates leaving their homelands, it raises the question as to whether their skills are being put to good use in the destination country. The chances of Brain Waste are possible. In a similar way, there is a shortage of skilled and competent people in India. A tremendous increase in wages of high-skill labour can be seen now in India. The emigration has also...
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...of Indian Tourism v/s Other Countries Table of Contents 1. Executive Summary Objective Pedagogy 2. Indian Tourism Promotional Activities in the International Arena Vision Statement Major Issues: Is India really ‘Incredible’? 3. Why nation branding is important for tourism? 4. Comparison of tourism promotion activities of India v/s other Countries Travel and tourism Competiveness Index Comparison of India with top five tourist destination in the world Comparison of India with top five tourist destination in the Asia-Pacific region Conclusion based on the comparison 5. Major Challenges for Indian Tourism Industry 6. Critical Evaluation Brand Planning & Strategy Comes First Successful Advertising Does not equal Brand Strategy 7. Tourism promotion and success strategy 8. References 3 Promotional Activities of Indian Tourism v/s Other Countries Executive Summary Objective: This study has been undertaken to put light on the various nuances of the Indian tourism Industry, India’s share of the pie in the global tourism industry, comparison of India’s tourism promotion strategy v/s other countries and to critically evaluate if the ‘Incredible India’ Campaign puts up a poor show or if it harbors to the psyche of the global tourists and portrays India as ‘The Destination to be’. Pedagogy: This study shall be undertaken using secondary research method....
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