Topic > Advantages and Disadvantages of Foreign Direct Investment - 2217

CHAPTER-1INTRODUCTION1.1 THEORETICAL FRAMEWORKForeign Direct Investment (FDI)This is direct investment in the production or operations of one country by a company in another country, either by purchasing a company in the target country or expanding the operations of an existing company in that country. This means that when one country invests money in the other country for business purposes or to earn more money. Benefits of Foreign Direct Investment: (a) Improves the foreign exchange market of the country (b) Increases employment and also production (c) Helps in bringing in new capital (d) Helps in transferring new technologies, management skills, intellectual property ( e) Increases competition with the country Disadvantages of Foreign Direct Investment: - (a) Risk for domestic companies that ownership goes to the foreign company. (b) Small businesses fear that they will not be able to compete with large, world-class companies and will exit the market. (c) The big giants of the world try to monopolize and take control of the highly profitable industry. Retail in India Retail is the sale of physical goods or merchandise from a fixed location, such as a department store, boutique or kiosk, or through a shopping mall, in small or individual batches for direct consumption by of the buyer. Retail may include subordinate services, such as delivery. Buyers can be individuals or companies. In trade, a "retailer" purchases goods or products in large quantities from manufacturers or importers, either directly or through a wholesaler, and then sells smaller quantities to the end user. Retail ranks second after agriculture in India. It employs 40 million people. A sizable majority of owners/employees are in the business due to lack... of half paper... of institutional investors as a means to stop the depreciation of the rupee, causes short-term stagnation in foreign direct investment and helps the country impress globally through liberalization and globalization, paving the way for the retail sector.CHAPTER-6BIBLIOGRAPHICAL BOOKS1. S. Neelamegham, “Marketing in India; Cases and Reading”, 3rd edition, 20092. Phillip Kotler, “Marketing Management” 11th edition, 2011WEBSITES1. http://indianresearchjournals.com/pdf/APJMMR/2012/October/4.pdf2. http://www.allbankingsolutions.com/Banking-Tutor/FDI-in-India.htm3.http://www.fibre2fashion.com/industry-article/7/604/fdi-in-retailing1.asp4. http://www.studymode.com/essays/Fdi-In-Retail-Market-In-India-433325.html5. http://irjbm.org/irjbm2013/November/Paper11.pdf6.http://zenithresearch.org.in/images/stories/pdf/2012/JULY/ZIBEMR/20_ZIBEMR_vol2_issue7_july2012.pdf.