Fixed Deposit Investment

Topics: Investment, Foreign direct investment, Macroeconomics Pages: 43 (10511 words) Published: October 4, 2011

Acknowledgement of the Student

It is with real pleasure that, I record my indebtedness to my academic Guide, Prof. Mr_________________ for his counsel and guidance during the preparation of this project. My thanks are due to (those who have helped in collecting data or analysis or typesetting etc.)

Signature of the Student________________ Place: Name:

Certified that this Project on Foreign Direct Investment is a work done by MISS ___________________ during the period of her study under my guidance, and that the project has not previously formed the basis for the award of any degree, diploma, associate ship, fellowship or similar other titles and that it is an independent work done by her.


ChapterContent Page NO

Acknowledgement I

1.Introduction: 7 i. Need for the Study of
Foreign Direct Investment.
ii. Objectives of the Study.
iii. FDI in India.
iv. Review of Literature
v. Limitations of the Study

2.Sample ,Sources &Methodology 67

3.Analysis and Discussion 71

4.Findings, Conclusion and Suggestions for further Research 76


FDI or Foreign Direct Investment is any form of investment that earns Interest in enterprises which function outside of the domestic territory of the Investor.
FDIs require a business relationship between a parent company and its foreign subsidiary. Foreign direct business relationships give rise to multinational corporations. For an investment to be regarded as an FDI, the parent firm needs to have at least 10% of the ordinary shares of its foreign affiliates. The investing firm may also qualify for an FDI if it owns voting power in a business enterprise operating in a foreign country.

Foreign Direct Investment (FDI)


Foreign direct investment is that investment, which is made to serve the business interests of the investor in a company, which is in a different nation distinct from the investor's country of origin.

A parent business enterprise and its foreign affiliate are the two sides of the FDI relationship. Together they comprise an MNC. The parent enterprise through its foreign direct investment effort seeks to exercise substantial control over the foreign affiliate company. 'Control' as defined by the UN, is ownership of greater than or equal to 10% of ordinary shares or access to voting rights in an incorporated firm. For an unincorporated firm one needs to consider an equivalent criterion. Ownership share amounting to less than that stated above is termed as portfolio investment and is not categorized as FDI.

Classification of Foreign Direct Investment

Foreign direct investment may be classified as Inward or Outward.

Foreign direct investment, which is inward, is a typical form of what is

termed as 'inward investment'. Here, investment of foreign capital occurs in

local resources.

The factors propelling the growth of Inward FDI comprises tax breaks, relaxation of existent regulations, loans on low rates of interest and specific grants. The idea behind this is that, the long run gains from such a funding far outweighs the disadvantage of the income loss incurred in the short run. Flow of Inward FDI may face restrictions from factors like restraint on ownership and disparity in the performance standard.

Foreign direct investment, which is outward, is also referred to as “direct investment abroad”. In this case it is the local capital, which is being invested in some foreign resource....
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • comparison of fixed deposit rates Essay
  • Essay on fixed deposits
  • Essay about Managing Your Fixed Deposits
  • Essay about Investment
  • Investment Essay
  • Investment Essay
  • Investment Research Paper
  • investment Essay

Become a StudyMode Member

Sign Up - It's Free