Project

Foreign Direct Investment (FDI):

A Study

Presented By: - Nirnay Sethi

MBA-IB

University Of Greenwich

Under the Guidance of: -Dr.Prasant Sarangi

Apeejay Institute of Technology & Management

Greater Noida, India

Contents:

1. Introduction

2. History of FDI

3. FDI in India

4. Objectives of FDI

5. Advantages of FDI

6. Disadvantages of FDI

7. Government policy on FDI

8. Impact of Foreign direct Investment on Indian economy

9.Conclusion

Introduction :

FDI as a unique form of international capital flow between specific pair of countries .It is a direct investment by a corporation in a commercial venture in another country.The role of FDI as access to new technology, skills product and financing. A host country and the foreign firm which acquires the investment it can provide a source of new technology, manufactured goods process, capital, organizational technologies and management skills. FDI has two forms, first regards to the establishment of a wholly new operation in a foreign country. The second involves acquiring or merging with an existing firm in the foreign country. FDI is divided in two kinds, horizontal FDI (market expansion investments) which is investment in the same industry abroad as a firm operates at home ; And vertical FDI (resource seeking investments), which comprises two firms further, the first is backward vertical FDI investing an industry abroad that provides inputs for a firm’s domestic production process. The second is forward vertical FDI in which an industry abroad sells the foods of a firm’s domestic production processes.

History of FDI

United States started it in the late 19th century. US were the dominator of FDI in 1960. Since 1960 some other countries are playing the major role of direct investing. The US share now less then quarter of the world total and now US is a major recipient of FDI. FDI has grown in...