The main purpose or objective doing this report is
1. To study what is actually Foreign Direct Investment (FDI) and their types.
2. To study the FDI trends and how it influences to India
3. To study the advantages and disadvantages also importance FDI to India and their investors itself.
Foreign Direct Investment (FDI) is capital provided by a foreign direct investor, either directly or through other related enterprises, where the foreign investor is directly involved in the management of the enterprise. According to International Monetary Fund (IMF, International Monetary Fund, 2013), Foreign Direct Investment or simply as FDI refers to an investment made to acquire lasting or long term interest in enterprises operating outside of the economy of the investors. It can simply define as the allocation by a multinational firm of capital, managerial and technical asset from its home country to a host country. In FDI it had three components whereas: equity capital, reinvested earning and intra-company loans. Inflows of FDI stated as a net basis meanwhile outflow of FDI is the reporting economy comprise capital provided by a firm from host country.
There were several types of foreign direct investment which is Multinational Corporation, transnational corporation, strategic alliance, and also joint venture. For Multinational Corporation it was operate or handling from their home country even it actually operating in several country. The transnational corporation is the country that maintains the significant operation in more than one country but regionalize management to the local country. Meanwhile the strategic alliances was an approach to going global that involve partnership between an organization and a foreign company in which both share knowledge and resources in developing new products or building production facilities. It was common place in the biotechnology, information technology... [continues]
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