Advantage And Disadvantage Of Fdi

2217 Words5 Pages
bulb-icon

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.

Show More
Related

  • Why China Can Attract More FDI: A Response to "Competitiveness in India and China: the FDI puzzle"

    1483 Words  | 3 Pages

    To begin with, this research exposed a FDI puzzle between India and China through analyzing the current economic condition. Prime, Subrahmanyam and Lin (2011) stated, "Given their growth records, large markets, and reformed economic systems, both China and India appear to be equally likely candidates for foreign direct investment. Yet, China has received substantially more FDI" (p. 303).

    Read More

  • Target Corporation Competitive Analysis Essay

    1800 Words  | 4 Pages

    Due to the good establishment of the business, it has huge market national. The company has therefore opened many retail shops and stores all over the country to ensure that their products are accessible to the customers. The entity provides a favorable environment, and many clients view the place as a fun shopping place to be. The retailer has targeted a big pool of customer because of the variety of products it sells. The stores products vary from kitchen goods, jewelry, and electronics clothes to hardware

    Read More

  • Concept Of Fdi In Tesco

    1785 Words  | 4 Pages

    Flow of money for the purpose of investments from one country to another country is called as Foreign Direct Investments. It is an investment made by a company based in one country for long lasting interest or controlling stake into a company in a foreign country. The nature of FDI could be either be inward or outward. Inward FDI refers to direct investments flowing into the home country from foreign land, and outward FDI refers to home country making direct investments in foreign land. The difference between inward FDI and outward FDI is net FDI inflow. Net FDI inflow could be either positive or negative based on the investments flowing between countries.

    Read More

  • Analysis of Express

    997 Words  | 2 Pages

    Levy, Michael, Barton A. Weitz, and Dhruv Grewal. Retailing Management. ed. New York, NY: McGraw-Hill Education, 2014. Print.

    Read More

  • PEST Analysis of Indian Consumer Goods Retailing Market

    1319 Words  | 3 Pages

    Introduction India is the world’s second most populated country with over 1.2 billion people. Since its independence from British rule in 1947, the country has been more or less a stable democracy. Until 1991, Indian governments imposed economic austerity and its markets were comparatively closed to the world. Economic reforms in 1991 brought about a change which made India an attractive and huge market for multinational corporations from all over the world (Joshi 8). Retail industry within a globalized world is one of the most thriving and profitable sectors.

    Read More

  • Jetblue Strategic Management

    759 Words  | 2 Pages

    Scale Economies: the industry contains several very large players and multiple medium to small players

    Read More

  • Firms Faced with Rivals and Advantage of Location

    1655 Words  | 4 Pages

    Firms end up satisficing, unless inside information is known. If one firm acts first others tend to follow and crowd out the market. Bibliography = == ==

    Read More

  • Statement of Purpose for a Masters in Retail Management

    602 Words  | 2 Pages

    Even the slowdown in current global economies could not bring retail sector down as retailers keep seeking for opportunities overseas to avoid challenging economic condition, which make this sector becoming more globalised and competitive. As an heir of an industrial components retailer, I also believe there are bountiful opportunities to grow in this emerging industry. But without deeply and truly understanding in every aspect of retailing, one could not survive in the battle. For this reason, I would like to pursue my education further by studying Master in retail management to obtain knowledge in retailing and hopefully become successful in the field.

    Read More

  • Case Study Of O2O

    842 Words  | 2 Pages

    The Indian retail industry has emerged as one of the most dynamic and fast-paced industries due to the entry of several new players. It accounts for over 10 per cent of the country’s Gross Domestic Product (GDP) and around 8 per cent of the employment. India is the world’s fifth-largest global destination in the retail space.

    Read More

  • The Pros And Cons Of Foreign Direct Investment

    1689 Words  | 4 Pages

    Foreign Direct Investment ( FDI) is a source that a country obtain from other countries in order to add value for it’s own economy. These sources can be various: Economic or technological. Foreign Investors may establish a new facility or open their branch or establish a partnership with a local company in host country. Nowadays, there is more demand of FDI’s than the world trade and world output. This drastic rise in FDI is due to the help of changing potentials and economic policies that are happening in the developing countries worldwide (Alesina and Dollar, 2000).Investors are more likely to invest their money on more profitable places,it would not be reasonable for companies to invest on less profitable countries. Moreover, the

    Read More

  • Indian FMCG Sector

    993 Words  | 2 Pages

    2. Organized Retail: The emergence of organized retail have lead to more variety with ease in browsing, opportunity to compare with different products in a category, one stop destination (entertainment, food and shopping) etc, which is playing an important role in bringing boom in the Indian FMCG market. Currently the modern trade is capturing 5% of the total retail space, which will increase to 10% and 25% in 2010 and 2025 respectively. Also, as the credit card and organized retail trend picks up, people won’t think much while buying and buy more.

    Read More

  • India Risk Analysis

    3461 Words  | 7 Pages

    Foreign Direct Investment (FDI) inflows to India amounting to US$4.06 billion were received during the financial year 2001-2002, with $2.46 billion (USD) received from the U.S. just in 2000-01 alone. This marked a 66% increase from the previous year. According to FDI Magazine, India was the number 3 recipient of FDI from January of 2002 to June of 2004. India had a total of 41 Foreign Direct Investment projects, beaten only by the United Kingdom with 53 and China with 54. FDI Magazine shares this observation: “Noticeable among the results for the second quarter is the rise of China to become the number one destination for foreign investment by number of projects. However, perhaps more significant is the increase in the number of projects heading for India, up over 77% year on year while the jobs creat...

    Read More

  • The Importance of Sound in Advertising

    3204 Words  | 7 Pages

    Rajagopal. "International Journal of Retail & Distribution Management." Emerald. Emerald Group Publishing Limited, 2011. Web. 21 Feb. 2014

    Read More

  • Wholesalers Case Study

    762 Words  | 2 Pages

    Wholesalers acts as a lesion between manufacturers of commodities and other industries that are interesting in selling the same products. Along this distribution chain wholesalers usually purchase goods in large quantities and in turn sells them to retailers who ultimately supplies goods and services to consumers. Due to the available space at wholesale locations they are able to store products for distribution to retailers which reduces retailers storage costs. Wholesalers are able to store goods in large quantities which allow retailers to purchase in small quantities. Due to this option retailers are able to only purchase what is needed at that given point (Kotler & Keller, 2012). Additionally, because wholesalers are able to purchase goods

    Read More

  • Advantages And Disadvantages Of National Integration

    1395 Words  | 3 Pages

    There are more than two hundred countries which exist on the world map today. Among them some countries are developed, a few are less developed and many of them are developing or under developed. In these countries there are different types of governments. There can be democracy, aristocracy, monarchy, republic, dictatorship and democratic republic which can be homogenous or heterogeneous. Apart from this nation building is becoming a problem in most the counties in the past as well as in the present scenario. National integration plays a vital role to develop a country or a nation and it shows oneness and solidarity but unfortunately in this today’s world nations have been divided into groups based on races, religion, language or demographically. Many of the counties believe in nation state among them are America and Europe but on the other hand when we talk about national integration than Pakistan comes in our minds and Pakistan is one of the sufferers in building national integration. One of the biggest hurdles in Pakistan’s national integration is the religion. The Shia and sunni phenomenon is one of the major issues in national integration.

    Read More

More about Advantage And Disadvantage Of Fdi

Open Document