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.)
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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.
Content Page NO
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
Sample ,Sources &Methodology 67
Analysis and Discussion
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
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....
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