Advantage And Disadvantage Of Fdi

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Recommended: Evolution of retailing in india

CHAPTER-1
INTRODUCTION

1.1 THEORETICAL FRAMEWORK
Foreign direct investment (FDI)
It is direct investment into production or business in a country by a company in another country, either by buying a company in the target country or by expanding operations of an existing business in that country. It means that when a country invest the money in the other country for the purpose of business or to earn more.
Benefits of FDI:-
(a) Improves the currency market of the country
(b) Increase in employment and the production will also increase
(c) Help in bringing the fresh capital
(d) Helps in transfer of new technologies, management skills, intellectual property
(e) Increase the competition with the country
Disadvantages of FDI:-
(a) Risk for domestic companies that the ownership will go to the foreign company.
(b) Small enterprises fear that they may not be able to compete with world class large companies and will go out of the business.
(c) Large giants of the world try to monopolise and take over the highly profitable sector.
Retail in India
Retail consists of the sale of physical goods or merchandise from a fixed location, such as a department store, boutique or kiosk, or by mall, in small or individual lots for direct consumption by the purchaser. Retailing may include subordinated services, such as delivery. Purchasers may be individuals or businesses. In commerce, a "retailer" buys 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.
Retailing comes on the second place after farming in India. It employs 40 million people. A sizeable majority of owner/employees are in the business because of lack ...

... middle of paper ...

...titutional investors as a way to halt the rupees’ depreciation puts short-term stagnation in FDI and helps country to make an impression on the world wide level through liberalization and globalization, paving way to retail sector.

CHAPTER-6
BIBLIOGARPHY

BOOKS
1. S. Neelamegham, “Marketing in India; Cases and Reading”, 3rd edition , 2009
2. Phillip Kotler, “ Marketing Management” 11th edition , 2011

WEBSITES
1. http://indianresearchjournals.com/pdf/APJMMR/2012/October/4.pdf
2. http://www.allbankingsolutions.com/Banking-Tutor/FDI-in-India.htm
3.http://www.fibre2fashion.com/industry-article/7/604/fdi-in-retailing1.asp
4. http://www.studymode.com/essays/Fdi-In-Retail-Market-In-India-433325.html
5. http://irjbm.org/irjbm2013/November/Paper11.pdf
6.http://zenithresearch.org.in/images/stories/pdf/2012/JULY/ZIBEMR/20_ZIBEMR_vol2_issue7_july2012.pdf.

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