A foreign direct investment FDI is an investment in the form of a controlling ownership in a business in one country by an entity based in another country. The origin of the investment does not impact the definition, as an FDI: the investment may be made either "inorganically" by buying a company in the target country or "organically" by expanding the operations of an existing business in that country. 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 facility, and a lasting management interest 10 percent or more of voting stock in an enterprise operating in an economy other than that of the investor.
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What Is Foreign Direct Investment - Free Essay Example | premiopoesiadiliegro.info
In this project I have analyzed the situation of Indian market as a target market for international companies as hub for refinery business. Various government policies that affect international business, since economy is in growing stage. India had adopted Investment from different countries as the major strategy to give its economy a big leap. In liberalization paved the way for globalization. More pragmatic and scientific program and policies were adopted. Much emphasis was now given on foreign investment.
A Report on the Factors of Foreign Direct Investment in India
There are plenty of reasons for why India is a good destination for foreign direct investment. India has a high spend able income, emerging middle class, low cost competitive workforce; investment friendly policies and progressive reform process all contributing towards India being an appropriate choice for investors. Faster growth is increasing and India now a leading world importer of vegetable oils and pulses.
Scares away Business - Lastly one must consider the economic growth in a country. Companies try to pick the best place that can facilitate their growth, where they could be the most profitable. By introducing a corporate tax in a certain country, companies may avoid it and search for other alternatives. Some may turn to tax shelters like the Cayman Islands; others just search for locales that have lesser taxes.