FDI recent trend in india

Topics: Investment, Foreign direct investment, Development Pages: 8 (2397 words) Published: November 18, 2013
"Globalization means the production and distribution of products and services of a homogeneous type and quality on a world wide basis”. Globalization also means globalizing the marketing, production, investment, technology and other activities. How do these happen? Globalization does not take place in singly instance. It takes place gradually through and evolutionary approach.

Operating and planning to expand business throughout the world. Erasing the differences between domestic market and foreign market. Buying and selling goods and services from/to any country in the world. Establishing manufacturing and distribution facilities in any part of the world based on the feasibility and viability rather than national consideration. Product planning and development are based on market consideration of the entire world. Sourcing of factors of production and inputs like raw materials, machinery, finance, technology, human resources, managerial skills from the entire globe. Global orientation in strategies, organizational structure, organizational culture and managerial expertise. Setting the mind and attitude to view the entire globe as a single market.

There should not be unnecessary government restrictions which come in the way of globalization, like import restriction restrictions on sourcing finance or other factors fro broad foreign investments etc. FACILITIES:

The extent to which an enterprise can develop globally from home country base dependson the facilities available like the infrastructural facilities GOVERNMENT SUPPORT:
Although unnecessary government interference is a hindrance to globalization, government support can encourage globalization. Government support may take the form of policy and procedural reforms, development of common facilities like infrastructural facilities, R and D support, financial market reforms and so on.

Resources are one of the important factors which often decides the ability of a firm to globalize. Resourceful companies may find it easier to thrust ahead in the global market. COMPETITIVENESS:

The competitive advantage of the company is a very important determinant of success in global business. A firm may derive competitive advantage from any one or more of the factors such as low costs and price, product quality product, product differentiation, technological superiority, after sales service, marketing strength etc. ORIENTATION:

A global orientation on the part of the business firms and suitable globalization strategies are essential for globalization.

Free Flow of Capital: Globalization helps for free the flow of capital from one country to the other. It helps the investors to get a fair interest rate or dividend and the global companies to acquire finance at lower cost of capital. Further Globalization increases capital flows from surplus countries to the needy countries, which in turn increases the global investment. Free flow of Technology: Globalization helps for the flow of technology from advanced countries to the developing countries. It helps the developing countries to implement new technology. Increase in Industrialization: Free flow of capital along with the technology enables the developing countries to boost-up industrialization in their countries Spread up Production facilities throughout the Globe: Globalization of production, leads to spread up manufacturing facilities in all the global countries depending upon the locational various favorable production factors. Balanced development of world economies: With the flow of capital, technology and locating manufacturing facilities in developing countries, the developing countries industrialize their economies. This in turn leads to the balanced development of all the countries. Increase in Production and Consumption:...
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