definition of FDI According to Article 2‚ Law on Foreign Investment in Vietnam 1996‚ “FDI means the transfer of capital in money or any asset into Vietnam by foreign investors to carry out investment activities in accordance with the provisions of this Law”. Foreign investor means a foreign economics organization or a foreign individual investing in Vietnam. In another way‚ FDI is a kind of investment in which foreign investors contribute their capital to a project‚ directly
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Current Affairs on International Business The following NEWS on International Business is compiled from various sources. The source and the date is mentioned on every news. The students are expected to browse more on the same and keep a track depending on their sector specific interests. India cuts sensitive list for SAARC NLDC (21.08.2012) New Delhi: India has reduced the number of items in the sensitive list for SAARC’s non-least developed countries (NLDCs) like Pakistan‚ a move which will
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They have the following options: Indirect Exporting‚ Direct Exporting‚ Licensing‚ Wholly-Owned Foreign Direct Invest and a joint venture. Alternative 1: Indirect Exporting Pros No Initial Investment Low Risk Low Reversibility Cons Low Revenues Low Profit ------------------------------------------------- Low Control ------------------------------------------------- It is fantastic that this option provides not initial investment‚ low risk and ease of reversing the indirect exporting
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Ques: 1:- (i)Polycentric Orientation:- * When a firm adopts polycentric approach to overseas markets‚ it attempts to organize its international marketing activities on a country to country basis. Each country is treated as a separate entity and individual strategies are worked out accordingly. * Local assembly or production facilities and marketing organizations are created for serving market needs in each country. Polycentric orientation could be most suitable for firms seriously committed
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capabilities in emerging markets is a key strategic imperative for our organization. After careful review‚ it is recommended that we expand textile manufacturing to Indonesia. Investment in Indonesia does pose risks; however‚ these are outweighed by the numerous benefits that Indonesia offers for foreign direct investment (FDI). Indonesia offers a growing middle class‚ a stable political situation‚ strong domestic demand‚ as well as conservative macroeconomic policies. It is the world’s fourth
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countries The globalisation of production since 1980s Since 1980s‚ the production among the world became more integrated that firms break up their value chain and locate each activity according to comparative advantage. The increase of foreign direct investment (FDI) flow and the growth of outsourcing demonstrated this phenomenon UNCTAD (1999) indicated that there are two trends of the increasing FDI inflow. First‚ the inflow is highly concentrated in developed countries because the change of the
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Singh‚ who was the finance minister at that time went forward and introduced several economic reforms. The combination of foreign direct investment and expertise in information technology helped produce thousands of new jobs and created a growing middle class that in turn created increased domestic consumption and that resulted‚ again‚ in more foreign direct investments to meet the demand of Indian consumers. Presently the developing country; India is facing lot of problem with regard to inflation
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consumer and countries an opportunity to expose the product and services which cannot derived in their own country. International trade enable a country to participate in global economy and it is also a good chance of Foreign Direct Investment (FDI) which that the individuals invest into foreign companies to raise their income. Malaysia is one of the countries which are participating in the international trade. Malaysia is an open economy which have depends on external trade to achieve its economy growth
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business whether as direct/indirect investment or through trade. An evaluation of risks should be considered and strategies developed accordingly prior to any potential investment in a foreign country. One such risk which requires consideration is political risk i.e. "governmental or societal actions and policies‚ originating either within or outside the host country‚ and negatively affecting either a select group of‚ or the majority of‚ foreign business operations and investments." (Simon‚ 1982).
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and legal conditions‚ so the political impact on the foreign investments is very important. This paper explains this issue based on the Bata case in three parts. The first part evaluates the different ways in which Bata has interacted with foreign political systems in its investments and operations aboard. In the second part‚ the advantages and disadvantages‚ which MNEs bring to their company and the host-country when doing foreign direct investment‚ are analyzed relating to the Bata case. And the last
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