LOVELY PROFESSIONAL UNIVERSITY DEPARTMENT OF MANAGEMENT A BRIEF SYNOPSIS ON CAPSTONE PROJECT TOPIC: A STUDY ON FDI IN RETAIL IN BRICS COUNTRIES

Submittedto Lovely Professional University

In partial fulfillment of the Requirements for the award of Degree of Master of Business Administration in INTERNATIONAL BUSINESS
Submitted To: Mr. HimanshuSood Project Guide Submitted By: AshishPundir (11106037) Neelesh Nag (11106511) Deepak Arora (11104215) GauravGoyal (11104025)

Rajesh Singh (11105801) Section:Q1107

LOVELY PROFESSIONAL UNIVERSITY PHAGWARA, 144401, PUNJAB(INDIA)

1

Acknowledgement

I am very thankful to all those involved who have helped me in my Capstone Project

A STUDY ON FDI IN RETAIL IN BRICS COUNTRIES

I would also like to express my humble thanks to my mentorMr. HimanshuSood (CAPSTONE PROJECT GUIDE) for the valuable time they devoted to me helping me to better understand the depth of the requirement of the project.

Table of Content
ACTIVITY Introduction to FDI Retail Sector in the BRICS Countries Review of Literature Rationale of the Study Objectives Research Methodology Complete Work Plan with Timeline Expected Outcome of the Study References PAGE NO. 4 5-13 14-15 16 17 18 19 20 21-23

Introduction

Foreign Direct Investment

Foreign direct investment (FDI) is direct investment into production in a country by a company in another country, either by buying a company in the target country or by expanding operations of an existing business in that country. Foreign direct investment is done for many reasons including to take advantage of cheaper wages, special investment privileges such as tax exemptions offered by the country as an incentive to gain tariff-free access to the markets of the country or the region. Foreign direct investment is in contrast to portfolio investment which is a passive investment in the securities of another country such as stocks and bonds. There are two types of FDI: inward and outward, resulting in a net FDI inflow (positive or negative) and "stock of foreign direct investment", which is the cumulative number for a given period.

Methods of Foreign Direct Investment

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

Foreign direct investment incentives may take the following forms:

low corporate tax and individual income tax rates tax holidays other types of tax concessions preferential tariffs special economic zones EPZ Export Processing Zones
4

Retail Sector in theBRICS Countries

Brazil

Brazil is the fifth largest country in the world and the largest Latin American economy.

The Economist Intelligence Unit had forecasted that Brazil will overtake the U.K. to become the sixth-largest economy in 2011.

Brazil is the biggest exporter of iron ore and the largest exporter of meat, coffee, and chicken.

Brazil is the fifth most populated country in the world. Over the last two decades, welfare schemes launched by the government has led to the poverty rate to be halved in Brazil.

Income equality in the country has also fallen sharply, declining on average by 1.2% a year.

The Brazilian retail market is worth about $230 billion. More than 30 million Brazilians have risen out of poverty since 2003 to create a new middle class.

Retail Segment in Brazil

Brazil became a hot destination for investors since it found a place for itself in the now famous BRIC group of emerging economies. While some of Brazils bigger counterparts ran for cover during the financial crisis of 2008-09, the Latin American economy managed to keep its head high because of the consumption potential of its people. Also various stimulus packages rolled out by the government also put more money in the hands of consumers. Brazils retail market is estimated to be worth about $230 billion, driven mostly by domestic demand. Besides the 40% growth in GDP per capita during the last eight years or so, population distribution also plays a vital role in encouraging the growth of sectors such as retail. About 30% of the countrys population lives in the 10 principal metropolitan cities. Sao Paulo brims over with a population of 18 million, while Rio de Janeiro has 10 million.
5

Still, the consumption habits of this predominantly urban population are diverse. As a PwC report points out, the lower income sections tend to spend more on essentials such as food and beverages, while those in the upper income bracket splurge on leisure, durable goods, as well as luxury items. The Brazilian market is also perhaps the most internationalized among the BRICs, as the top 10 retailers corner almost 60% market share among themselves. Food retailers, apparel retailers, consumer goods makers, appliance retailers, and consumer staples companies form the backbone of the sector.

The Road Ahead For Retail The Brazilian juggernaut would do well to realize that it may not be wise to bank solely on fluctuating commodity prices. Beneath the glitz and glamour of Brazils shopping aisles lurk some issues that are common to many emerging markets, such as rampant inflation, hot capital inflows, and poverty, among other factors. First, the country, through its education system, will likely need to focus on training a future workforce to support the burgeoning retail industry.Still, corruption and bureaucratic red tape hamper the development of the retail sector and, as media reports point out, big foreign players find it difficult to navigate the byzantine ways of Brazilian bureaucracy.

Russia
Apart from the dominant oil and natural gas industry, construction, retail, banking, and manufacturing are a few other emerging sectors in the country. Russias exuberant consumerism, fueled by surging oil prices, had boosted the retail sector, until the financial crisis changed the scenario. Modern retail has been growing at about 13% a year in Russia and also increasingly spreading to tier-two and three cities. Moreover, the countrys modern retail food sector is expected to increase its share in the overall Russian grocery market in the next two years. It is interesting to note that even the older population of Russia now overwhelmingly prefers modern retailing formats to traditional stores. While domestic retailers lead the way, global retailers are also benefiting from the retail boom. Critical growth drivers for the economy include Services, which contribute 56% of the economys output, and Manufacturing, which makes up 38% of the GDP. The retail industry, which includes automotive and household goods repairs, received the highest FDI inflows in 2008. However, the sector has trailed the manufacturing industry in
6

recent times. Despite a rapidly shrinking economy, manufacturing has recorded growth, an encouraging sign. Real estate, retail, finance, and construction are the other prospective emerging sectors in the worlds tenth biggest economy. As such, it is not surprising that Russia has been identified as an economy with high FDI potential.

Economy: Recovery Trails BRICS Countries

After the tumultuous transition years from communism to capitalism spanning the 1990s, the Russian economy has been on a steady growth path since the onset of the 21st century, barring the recessionary phase during the latter half of 2008. The eight years between 1998 and 2006 have virtually been witness to an economic miracle, as Russian GDP expanded by an unprecedented 57.6%, while real income of the population grew by 65%. Poverty rates were cut by half and regional disparities toned down to a degree. The inflation rate, which was as high as 47% in 1996 declined to 9.6% by 2006. High-energy prices, robust domestic demand, large foreign inflows, and macroeconomic reform enabled the economy to clock an impressive growth. Economic growth averaged above 6% between 2001 and 2008, touching a high of 8.1% in 2007. However, the turmoil which engulfed the global financial system in 2008 sent Russia into its first recession in a decade, marked by a collapse of its stock markets, a massive flight of capital, and the loss of one-third of the value of the ruble. Growth remained stagnant, while consumer and investment demand came to a grinding halt across all regions of Russia. The largely oil-dependent economy crushed under the impact of tumbling oil prices, which sunk to abysmally low levels as most major economies went into a recession. What made Russia particularly vulnerable to the crisis was it s overt reliance on the oil and natural gas sector and a narrow industrial base.

Despite the stimulus programs, Russia was the worst-hit among BRIC nations by the global financial crisis, with the countrys real GDP contracting 7.9 percent in 2009 compared to the rosy outlook for other members of the BRIC group. Depressed export demand, tight credit flow, declining investment, and reduced consumption kept economic activity subdued for a while. Output is not seen to reach the pre-crisis high at least for the next few years. To make matters worse, the banking sector is in dire straits with overdue loans expected to increase sharply, weakening capital adequacy. Despite the central bank lowering its interest rate

several times, the banking industry remains structurally weak. To rev up the sector, the government set aside about $16 billion to support bank recapitalization.

Business climate

The Russian governments announcement of a $32-billion privatization plan is the latest move to change investor perceptions about doing business in Russia. Russia was a favorite destination for FDI inflows until the onset of the financial crisis, when foreign investments were reduced to a trickle. However, the potential for future FDI inflows remains large, with the energy sector slated to draw foreign investors who want a piece of the countrys huge natural resource pie. However, the countrys business environment is still a weak area, with government intervention in private enterprises being the norm rather than exception. Some foreign companies have run into problems with their local partners, while the Russian administration has not hesitated to bully companies which seem to pose a threat to government-owned firms. In a 2009 study by World Economic Forum, Russia stood 114th out of 121 countries in terms of foreign trade. Despite the government slashing of corporate tax rates recently, Russia stands to lose competitiveness as foreign investment dries up. Lack of modern infrastructure is also hurting the countrys business prospects.

India
The Economic Survey of India is a document presented to Parliament by the government a few days before the Union Budget. It is an analysis of the state of the economy and its prospects. Economists and analysts scan it closely because it very often reflects policy changes that will be announced in the Budget The Survey is essentially talking about multi-brand retail -- the Wal-Marts and the Carrefours. India permits 100% FDI in cash & carry and wholesale trading (which is business-to-business) and 51% in single-brand stores (such as Gucci or Apple). Says the Survey: "FDI in retail trading is permitted in Brazil, Argentina, Singapore, Indonesia, China and Thailand without limits on equity participation, while Malaysia has equity caps." FDI in retail has been projected as a huge threat to the unorganized sector -- the kiranas. "The Indian retail sector comprises 13% of GDP and employs 6% of the nation's workforce," says

a 2008 PricewaterhouseCoopers (PwC)-CII study titled, "The Benefits of Modern Trade to Transitional Economies." Allowing FDI at this stage could alienate this huge vote-bank. Allowing FDI into the retail sector will usher in large global companies who will need to hire millions for their pan-India retail operations."

The Charm of the Indian Market

According to the government's Economic Survey, "The retail sector is expected to record healthy sales in 2010-11 and grow by 10.2% in 2011-12. The sector's PAT (profit after tax) margin is expected to expand over the next three years on account of a faster rise in income vis-a-vis expense." Adds the PwC-CII study: "India is ranked as one of the world's most exciting retail destinations." The study says thatIndia's retail sector is worth an estimated US$350 billion and is growing between 30% and 40% per annum. (This relates to 2008, but there is a huge divergence in the absolute numbers and growth estimates put forward by various organizations.)

Organized Sector Growing

If FDI is going to happen anyway, why is there so much excitement about it now? The reason is that this is an opportunity to push it through. India, like many other parts of the world, is suffering from high food inflation; at its peak earlier this year, it crossed 18%. India, unlike other parts of the world, suffers from huge wastage in the food chain. "Researchers estimate avoidable supply chain costs (wastage, excess inventory and excess transportation costs) in Indian food and grocery sales to be about US$24 billion," says the PwC-CII report. "One of the arguments in favor of FDI is that it will bring with it the technologies and expertise required to build robust food supply chains." The Reserve Bank of India (RBI) is concentrating on tackling inflation and is raising interest rates. This, in turn, is making the cost of money too expensive for companies and they are postponing investment plans. The heady GDP growth that India is expecting can get derailed if inflation continues to stay high. FDI in retail can thus be sold as a solution for inflation -the food inflation component -- without hampering growth. It makes it more palatable to constituencies opposed to the idea.

China
Fast Facts

Retail sales in China amounted to nearly $2.1 trillion in 2010, nearly 50% of those in the U.S. Chinas retail sales are expected to grow by around 10% in 2011.

Chinas retail sector is showing some signs of consolidation in 2011. The market share of the top 20 retail chains rose to 8.9% in 2011 from 8.4% in 2010

Over 25 of the worlds largest retailers are conducting business in China.

Five of Chinas domestic retailers are ranked among the 250 largest global retailers on the Global Powers of Retailing for 2010.

WTO Accession Powers Foreign Investment in Retail Chinas accession to the World Trade organization (WTO) in 2001 marked a new, liberalized era for foreign investment in retail. Under the WTOs Accession Protocol, the opening up of the retail sector was phased over a period of five years to December 2006. The framework of rules however, left much to be desired in terms of clarity and transparency. On the issue of equal ownership between the domestic retailer and the foreign investor, theCommercial Sector Measures brought out in April 2004 by the Chinese government were in contradiction with theAccession Protocol as well as the 2007 FDI Guidance Catalogue. While the Commercial Sector Measures restricted foreign investment to 49% equity for foreigninvested retail chains with more than 30 outlets, the Accession Protocol as well as the FDI Guidance Catalogue of 2007 allowed for equal ownership. However, providing some clarity, the Chinese governments Administrative Measures for Foreign Enterprises or Individuals Establishing Partnership Enterprises, brought out in 2009, now permits foreign investors or individuals to set up retail enterprises in partnership with domestic entities in China. The Chinese Ministry of Commerce has also been gradually delegating the authority to approve all foreign-invested retail businesses to provincial commerce branches, facilitating the expansion of foreign retail players within the country. However, the authority to approve
10

retail businesses involving items controlled by the state, as well as enterprises using the channels of direct selling, including, mail order, the internet, franchises, commissioned operations or commercial management, remains centralized.

Retail formats in vogue

Chinas retailing sector remains highly fragmented, housing many small and medium-sized retailers unlike the U.S. where the big retailers have a dominating presence. China was home to over 549,000 retail enterprises. Despite the fact that the number of chain stores has grown in recent years, cross-provincial retailers remain less common because of local market access barriers. However, China does flaunt a wide array of retail formats, each at a different level of evolution and development:

Department stores: These stores were popular earlier on, but are facing intense competition now and are battling to stay ahead.

Hypermarkets: The development of hypermarkets has been led by international retailers, who are now spreading their wings to tier 2 and 3 cities, as markets in tier 1 cities reach saturation.

Supermarkets: This highly fragmented market dominated by domestic players, is witnessing cut-throat competition, often leading to weeding out of the weaker players coupled with strategic consolidation.

Convenience stores: Though still in the development stage, this format is witnessing increasing competition, mostly among domestic chains.

Specialty stores: Electronics/Appliances: This segment is clearly dominated by domestic players, with limited foreign investment.

Discount stores: Still evolving, this format remains concentrated in tier 1 cities. The first discount store was introduced by Carrefour in 2003.

Franchising: Constituting about 3% of Chinas total retail market, franchising seems to have tremendous potential for future growth

Direct Selling: With direct selling rules introduced in 2005, providing the much needed legal framework, the potential for further growth remains immense.

Online Retail: Online shoppers grew 68% between 2009 and 2010 to 185 million. Online retail sales have been predominantly consumer-to-consumer transactions.
11

However, with over 29% of its population using the internet, online retail sales are poised to grow over 30% per year.

Encouraging Foreign Retailers Chinese retail arena, they still face restrictions and lack of clarity in rules. This is evident in the fact that only 5% of Chinas retail enterprises are foreign-invested. Foreign retailers have played an instrumental role in providing impetus to organized retail in the country as well as modernizing the sector through best practices and state-of-the-art technology. In the best interest of the Chinese retail industry, it may be beneficial to support and encourage joint ventures and partnerships between domestic and foreign retailers. Currently, some of the foreign retail giants contend that prime retail real estate space always goes to a local player, which puts them at a disadvantage. Challenges and hurdles notwithstanding, continued urbanization and a prosperous middleclass will continue to be the drivers of the booming Chinese retail sector. Not surprisingly, the world is bracing to witness the emergence of China as one of the largest global retail market in the next decade.

South Africa
The South African economy during the years of Apartheid was torn by economic sanctions, with foreign investors fleeing the country, and average growth rates ranging between 1- 2% until the 1990s. The economic performance of the country during the first decade of freedom was impressive on several counts. Growth rates demonstrated an upward trend and the real GDP averaged 3% in the period from 1994-2003 and an outstanding average of 5% in 20042006. In 2006, the Gross Domestic Product (GDP) of the country stood at $255 billion, with agriculture contributing 2.5%, industry representing 30.5 % and services amounting to a 67% majority share. South Africa has been witnessing an uninterrupted 33 quarters of expansion in real GDP since September 1999. This is the longest economic upswing in the countrys history. Development has been fueled by investment and thriving consumption. Known as the Accelerated and Shared Growth Initiative for SA (AsgiSA), the government of South Africa has embraced the goals of increasing the growth rate to a minimum of 6% by

12

2010 and halving poverty and unemployment by 2014. Another program, Black Economic Empowerment, has fostered new economic opportunities for previously disadvantaged groups. With these and other initiatives, a new black middle class in South Africa has emerged.

With an emerging black middle class, the retail sector in the country is roaring. Retail majors are on an investment spree, as the wholesale and retail trade, hotels and restaurants sector grew by 6.1%, contributing around 1% to GDP in 2006. But 2007 saw a slight slowdown in this sector due to rising interest rates. Prudent policies and economic growth have resulted in a drop in South Africas budget deficit (difference between governments total expenditure and its total receipts excluding borrowing) to a mere 0.3 % of GDP in 2005-06. This figure is estimated to inch up to 0.4% in the coming years. Consumer inflation raised its hood in 2006 to 6.8%, mainly on the back of strong domestic demand, rising wages due to labor market pressures, and climbing prices of imported goods like oil. The depreciation in the Rand further aggravated the situation. In order to contain inflation, key interest rates in the country have been raised.

With the help of such measures, South Africa managed to pull out of the recession as soon as November 2009, when it recorded a tiny but significant growth of 0.9% in the third quarter. Manufacturing too had woken up from hibernation, posting a 7.6% quarter-on-quarter rise. Zuma affirmed that, By the end of December, we had created more than 480,000 public works opportunities, which is 97% of the target we had set. South Africa has been on the upward path since its recovery. GDP growth in the fourth quarter of 2009 was 3.2%. But going forward, the authorities have to curb public expenditure growth, which was deliberately fueled to stimulate the economy. The International Monetary Fund (IMF) predicts South Africas budget deficit for 2009-10 will be 5.7% of the GDP, which might be trimmed with the economys slow progress. South Africa got a major fillip recently when it was invited to join the exclusive BRIC (Brazil, Russia, India, and China) group of emerging economies. South Africa will attend the groups next summit in 2011 and the newly formed quintet will be called BRICS.

13

Review of Literature
Hymer,Stephen (1960), in his study International Operations of National Firmsfound that MNEs have both tangible and intangible resources, and explicit and tacit knowledge, in the form of technologies, managerial skill, international networks, capital, and brand names and goodwill.

Lucas, Robert E. Jr., (1990) in his study Why Doesnt Capital Flow from Rich to PoorCountries? focused on linkages and on the rational behavior of different foreign investors in the face of reform uncertainty.

Cheng, Joseph L.C. 1993, in his study found that The management of Multinational R& D : Aneglected topic in international business research, noted the growing importance of crossborder R & D activities and suggested that additional research on FDI should be done on why firms internationalize their R & D .

Anand, J. and Delios, A.(1996),in his research stated that Competing globally: How Japanese MNCs havematched goals and strategies in India and China, stated

that the relatively slow growth of FDI from Japanese MNCs in India as compared to China is attributed to the desire to gain only market access in India.

Garg, R., G. Kumra, A,et.al(1996).in their study Four Opportunities in Indian Market stated that along with the regulation of product prices.

Feinberg &Majumdar (2001) foundin their study Technology spillovers fromforeign direct investment in the Indian industry, thatLiberalization of FDI policies offers opportunities for firms as well as threats.

Aditya K.R.andBajaj,et.al (2007) in his studyGlobalization in the Indian Industry FDI spillovers and implications on DomesticProductivitywork made an attempt toanalyze and study the impact of globalization and FDI spillovers in various forms to the domestic industry in terms of domestic productivity and competitiveness etc.
14

Jaya Gupta(2007) in his paper Globalization and Indian Economy: Sector-wise Analysis of FDI inflows, made an attempt to review the change in sectoral trends in India due to FDI Inflows since liberalization. This paper also examines the changed policy implications on sectoral growth and economic development of India a whole.

Jayashree Bose(2007) in his book, FDI Inflows in SectoralExperiences,

India and China

studied the sectoral experiences faced by India and China

in connection with FDI inflows. This book provides information on FDI in India and China, emerging issues, globalization, foreign factors, trends and issues in FDI inflows.

Sudershan K (2007) in his thesis, FDI in India and its impact on the Performance of retailindustry in India made an attempt to examine the impact of FDI inflows on financial performance and export performance of select companies and the financing pattern of FDI and Non-FDI based select companies.

Tanay Kumar Nandi and RitankarSaher (2007) in their studyForeign Direct Investment in India with Special Focus on Retail Trade made an attempt tostudy the Foreign Direct Investment in India with a special focus on Retail Trade.This paper stresses the need of FDI in India in retail sector and uses the augment that FDI is allowed in multiple sectors and the effects have been quite good without harming the domestic economy. The study also suggests that FDI in retail sector must be allowed.

15

Rationale of the Study

The study is basically based on analyzing the economic impact of FDI in retail in BRICS countries. The study focuses on the growth of Foreign Direct Investment in BRICS economies and its impact on Gross Domestic Product of the member countries. The study focuses on the employment generation through the investments by foreign countries in BRICS economies. The study focus on making a comparative analysis for the investment by foreign companies in Retail sector with other industries.

16

Objectives

The objectives of the study are as follows:

1. To study the growth of the retail business in BRICS countries. 2. To study the contribution of FDI in retail sector in BRICS countries. 3. To study the impact of FDI in retail on the GDP of BRICS economies. 4. To study the impact of FDI in retail on the employment generation in BRICS countries. 5. To study the trend analysis on the valuation of FDI in retail in BRICS countries from March 01 to March 11.

17

Research Methodology

Research Methodology deals with method of the study i.e. how the study was conducted and what are the various techniques used in the collection of the data and the limitation of the study. The source of data is basically secondary as there is no any fresh data generation through primary survey. The data would be collected from various sources like Country Reports on Economic Policy and Trade Practice Bureau of Economic and Business Affairs, from Websites of World Bank, IMF, WTO, RBI, UNCTAD and EXIM Bank etc.

18

Complete Work Plan with Timeline

The study is carried out according to the following timelines: 1. Preparation of the synopsis: 15 days* 2. Data collection : 15 days* 3. Carrying the secondary research : 20 days* 4. Analyzing the research : 10 days* 5. Generating Conclusion : 10 days* (* the actual timeline may vary)

19

Expected Outcome of the Study

The study is basically based on analyzing the economic impact of FDI in retail in BRICS countries, focuses on the growth of Foreign Direct Investment in BRICS economies and its impact on Gross Domestic Product of the member countries and on the employment generation through the investments by foreign countries in BRICS economies. The comparative analysis for the investment by foreign companies in Retail sector with other industries.

20

References

Anand, J. and Delios, A., Competing globally: How Japanese MNCs havematched goals and strategies in India and China, Journal of World Business.31, 3, Fall 1996, pp.50-62.

Aditya KR Bajaj and Swastik Nigam (Dec 2007) Globalization in the IndianIndustry FDI spillovers and implications on DomesticProductivity: 1991-2007, is a research project done under IIM Ahmedabad.

Caves, Richard. 1996. Multinational Enterprise and Economic Analysis, 2nd ed. Cambridge: Cambridge University Press.

Cheng, Joseph L.C. 1993, The management of Multinational R& D : Aneglected topic in international business research, Journal of InternationalBusiness Studies, 24(1) ;1-18

Dijkstra, A. Geske. 2000. Trade Liberalization and Industrial Development inLatin America, World Development, vol. 28, no. 9, pp. 1567-1582.

Feinberg, Susan &Majumdar, Sumit K. 2001. Technology spillovers fromforeign direct investment in the Indian pharmaceutical industry, Journal of International Business Studies, vol. 32, no. 3 (Third Quarter), pp. 421-437

FDI Inflows in Indian Industry and Bhupal Singh (2005). Methodology,Compilation and Reporting of Foreign Direct Investment Statistics: The IndianExperience, Reserve Bank of India, Mumbai

Fujita, Masahisa, Paul Krugman, and Anthony J. Venables, 1999, The SpatialEconomy (Cambridge, Massachusetts: MIT Press).

Garg, R., G. Kumra, A. Padhi& A. Puri. 1996. Four Opportunities in Indian Market. McKinsey Quarterly, 4: 132-144.
21

Hymer, Stephen. 1960. The International

Operations of National Firms: AStudy of

Direct Investment. Ph.D. dissertation. Boston: MIT Press.

Jaya Gupta(2007), Globalization and Indian Economy: Sector-wise Analysisof FDI inflows

Jayashree Bose(2007), FDI Inflows in India and China A SectoralExperiences, ICFAI University Press, Hyderabad

Krugman, Paul, 1991, Increasing Returns and Economic Geography, Journalof Political Economy, Vol.99 (June), pp.483-99.

Lucas, Robert E. Jr., 1990, Why Doesnt Capital Flow from Rich to PoorCountries? American Economic Review, Vol. 80, No. 2, pp. 92-96.

Reserve Bank of India (2002), Report of the Committee on Compilation of Foreign Direct Investment in India.

Reserve Bank of India (2005), Financial Performance of FDI Companies in India, Reserve Bank of India Bulletin.

Sudershan K (2007), FDI in India and its impact on the Performance of retailindustry in India, is a doctoral dissertation submitted toDepartment of Commerce, Osmania University, Hyderabad, 2007.

Tanay Kumar Nandi and RitankarSahu, Foreign Direct Investment In IndiaWith Special Focus On Retail Trade, Journal Of International Trade LawAnd Policy, Year: 2007, Vol.: 6,Issue: 2,Page: 40-53,Emerald GroupPublishing Limited.

Teece, David. 1977. Technology transfer by multinational firms: The resource cost of transferring technological knowhow, Economic Journal, vol.87 (June), pp. 242-261.
22

Vachani, Sushil. 1997. Economic liberalizations effect on sources of competitive advantage of different groups of companies: The case of India, International Business Review, vol. 6, no. 2 (April), pp. 165-184

Tybout, James. 2000. Manufacturing Firms in Developing Countries: HowWell Do They Do, and Why? Journal of Economic Literature, vol. XXXVIII(March), pp. 11-44.

http://knowledge.wharton.upenn.edu/india/article.cfm?articleid=4581

http://www.lowtax.net/lowtax/html/offon/southafrica/sa_foreign.html

http://www.thomaswhite.com/explore-the-world/south-africa.aspx#economy

http://www.thomaswhite.com/explore-the-world/bric-spotlight/china-retail.aspx

http://www.thomaswhite.com/explore-the-world/russia.aspx#economy http://www.thomaswhite.com/explore-the-world/bric-spotlight/brazil-retail.aspx

23