EXPORT‚ LICENSING & FDI a) Export: Exporting involves producing goods at home and then shipping them to the receiving country for sale. Pros: 1) It is a relatively low-cost activity to get involved in international business and expand profit. 2) A firm can further create economies of scale which should lead to lower cost and hence expansion of profit Cons: 1) In relation to location economies‚ a firm may not always be located in the best region for that specific area and is therefore restricted
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emerging markets‚ up from 14th in 2004 with 72.4% of all economies in the world receiving Chinese FDI. China’s direct investment both inward and outward FDI provides important net long-term economic benefits for both home and host countries. In the past two decades‚ outward FDI from China increased by nearly 300%. According to the special report of TNCs and Canada-China FDI‚ the development of China’s outward FDI can be classified into two stages: (1)1982-2000‚ spontaneous stage‚ and (2) 2000-current‚ government-oriented
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models. However‚ retailing is one of the few sectors where foreign direct investment (FDI) is not allowed at present. FDI in retail industry FDI in retail industry means that foreign companies in certain categories can sell products through their own retail shop in the country. At present‚ foreign direct investment (FDI) in pure retailing is not permitted under Indian law. Government of India has allowed FDI in retail of specific brand of products. Following this‚ foreign companies in certain
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deregulation‚ unit root‚ co integration. I. INTRODUCTION oreign direct investment (FDI) not only provides developing countries (including Nigeria) with the much needed capital for investment‚ it also enhances job creation‚ managerial skills as well as transfer of technology. All of these contribute to economic growth and development. To this end‚ Nigerian authorities have been trying to attract FDI via various reforms. The reforms included the deregulation of the economy‚ the new industrial
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growing‚ expected to reach US$804.06 billion in 2015. As part of the economic liberalization process set in place by the Industrial Policy of 1991‚ the Indian government has opened the retail sector to FDI slowly through a series of steps: The Indian government removed the 51 percent cap on FDI into single-brand retail outlets in December 2011‚ and opened the market fully to foreign investors by permitting 100 percent foreign investment in this area. It has also made some‚ albeit limited
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changes to their economy need to occur‚ and the best option is to make their country more appealing to FDI. FDI will promote growth through jobs‚ technological advancements‚ and diversifying their economy (Daniels‚ Radenbaugh‚ & Sullivan‚ 2009‚ p. 479). South Africa has had a clear vision of what they would like their country to aspire to‚ but have face numerous challenges that prevent countries from FDI. They do not have sustainable economic growth‚ declining population‚ safety issues‚ and perceived
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investment has increasingly been identified as a major growth-enhancing component in most developing countries. FDI promotes economic growth in the host country in a great number of ways. From a more compressed perspective‚ these effects of foreign investment could be direct through a certain investment source or indirect through certain spillover effects. In a more broad view however‚ FDI could be said to put pressure on the firms in their host countries to improve their competitiveness leading them
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form of foreign direct investment (FDI). The share of net FDI in world GDP has grown five-fold through the eighties and the nineties‚ making the causes and consequences of FDI and economic growth a subject of ever-growing interest. This report attempts to make a contribution in this context‚ by analyzing the existence and nature of causalities‚ if any‚ between FDI and economic growth. It uses as its focal point India‚ where growth of economic activities and FDI has been one of the most pronounced
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FDI vs FPI FDI is an acronym that stands for Foreign Direct Investment. It refers to the type of investment carried out at international level where an investor will acquire a stake in an enterprise in a foreign country with long term realization of goals in the enterprise. FPI stands for Foreign Portfolio Investment where an international investor acquires stakes in a foreign country in terms of stock‚ bonds and some other assets but with the investor having an inert role in the management of those
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because of the realization of the true economic growth potential of India‚ by the foreign investors as well as business houses. Till about the recent times. India continued to be a whole soul agricultural economy‚ which had been impregnated with various types of beaurocracy‚ exploitation and corruption. In spite of this‚ the westerners saw tremendous potential in India to develop as an economically strong adobe for investment and ploughing in of cash in order to start off a new venture. But till recently
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