Beruflich Dokumente
Kultur Dokumente
FDI Marketing Production R&D Factors like Raw Material Other Factors
FDI - Benefits for Host Country Capital MNCs Invest for Long Term Projects and Take Risks for the Profits Technology Positive Effect on Productivity and Economic Growth Market Access Exports, Maruti Exports to East Europe Increase in Domestic Investments - JVs
FDI - Benefits for Host Country Export Promotion Plants in SEZ, EOU Employment Generation Direct and Indirect Employment Social Effects Market Reforms, Competition Privatisation, Infrastructure, Literacy Spin off Benefits Growth of Ancillary Units, Better Products in Domestic Markets
Both companies and countries are concerned about the control of foreign investments Countries fear decisions contrary to national interest and companies want to safeguard their competitive positions Ownership of 10 to 25% voting stocks is considered as FDI FDI - Expand Sales, Acquire Resources, Minimize Competitive Risk and Political Advantage
INTERNATIONAL BUSINESS
FDI - International Trade
Post World War 2
Rightist Free Trade Leftist Protectionism Democracy in most of the countries International Trade declined after World War 1 International Trade improved after World War 2 Liberalization and Globalization Technology Advancement Improved Production Factor Mobility
Personal notes of Prof. Manohar Pandit No unauthorised distribution
Resource Mobilisation
Access to Foreign Capital Market For Indian Companies Permitted Since 1992-93 Companies With Good Track Record For Three Years Allowed For Euro Issue / GDR / ADR / FCCB Global Depository Receipts American Depository Receipts Foreign Currency Convertible Bonds
Resource Mobilisation
DR Negotiable Certificate in USD Represents non-US companys Publicaly Traded Local Currency Equity Shares DR Created By Delivering Indian Company Shares With Depositorys Custodian Bank Depositorys Custodian Bank Issues DR in USD DR are Freely Tradable
Resource Mobilisation
DR GDR is Marketed Globally and Not For Specific Country As per Guidelines of 1995 Three Year Condition is Relaxed For Infrastructure Projects, Including Power Oil Exploration Telecom Ports and Airports
DR GDR is Cheap Source of Capital Restriction for Investments in Stock Market and Real Estate No Limits for GDR Issues Other Investments in India Can be in Form of Investments by FII FCCB Issue Proceeds to Conform to External Commercial Borrowings and end use