FOREIGN DIRECT INVESTMENT

Presented by Tajbir kaur Roll No: B37

INTRODUCTION
Foreign direct investment (FDI) refers to the net inflows
of investment to acquire a lasting management interest in an enterprise operating in an economy other than that of the investor. It is the sum of equity capital, reinvestment of earnings, other longterm capital, and short-term capital, It usually involves participation in management, joint-venture, transfer of technology and expertise. FDI is a measure of foreign ownership of productive assets, such as factories, mines and land. Increasing foreign investment can be used as one measure of growing economic globalization.

TYPES
A foreign direct investor may be classified in any sector of the
economy and could be any one of the following:

an individual a group of related individuals an incorporated or unincorporated entity a public company or private company a group of related enterprises a government body an estate (law), trust or other social institution

METHODS
The foreign direct investor may acquire voting power of an
enterprise in an economy through any of the following methods:

by incorporating a wholly owned subsidiary or company by acquiring shares in an associated enterprise through a merger or an acquisition of an unrelated enterprise participating in an equity joint venture with another investor or enterprise

FDI EXAMPLES
Foreign direct investment incentives may take the following examples:

low corporate tax and income tax rates tax holidays preferential tariffs EPZ - Export Processing Zones investment financial subsidies job training & employment subsidies

THANK YOU