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  • Foreign Direct Investment Pai

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    Sameer Ghanekar
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    Foreign direct investment (FDI) refers to the flow of funds from one country to another for investment purposes. There are benefits and costs of FDI for both host and home countries. For host countries, FDI brings capital, technology transfers, access to new markets, increased domestic investment, export promotion, job creation, infrastructure development, and formation of industry clusters. However, it can also result in social costs. For home countries, FDI leads to long-term inflows of earnings and exposes domestic companies to foreign markets, but it also means paying higher salaries to employees stationed abroad. Key characteristics that drive FDI include following competitors, international product life cycles, locating production in different countries, and contract manufacturing arrangements.

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    Foreign direct investment (FDI) refers to the flow of funds from one country to another for investment purposes. There are benefits and costs of FDI for both host and home countries. For host countries, FDI brings capital, technology transfers, access to new markets, increased domestic investment, export promotion, job creation, infrastructure development, and formation of industry clusters. However, it can also result in social costs. For home countries, FDI leads to long-term inflows of earnings and exposes domestic companies to foreign markets, but it also means paying higher salaries to employees stationed abroad. Key characteristics that drive FDI include following competitors, international product life cycles, locating production in different countries, and contract manufacturing arrangements.

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    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
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    11 views6 pages

    Foreign Direct Investment Pai

    Uploaded by

    Sameer Ghanekar
    Foreign direct investment (FDI) refers to the flow of funds from one country to another for investment purposes. There are benefits and costs of FDI for both host and home countries. For host countries, FDI brings capital, technology transfers, access to new markets, increased domestic investment, export promotion, job creation, infrastructure development, and formation of industry clusters. However, it can also result in social costs. For home countries, FDI leads to long-term inflows of earnings and exposes domestic companies to foreign markets, but it also means paying higher salaries to employees stationed abroad. Key characteristics that drive FDI include following competitors, international product life cycles, locating production in different countries, and contract manufacturing arrangements.

    Copyright:

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    FOREIGN DIRECT INVESTMENT

    -
    -PROF. D.C.PAI
    Definition and Importance

    WHAT IS INVESTMENT ?
    “ The flow of funds from one destination to another”

     Investment goes -home country to another country


    INVESTMENT OUTFLOW.

     Foreign investment comes in from another country to


    the home country,- ‘INVESTMENT INFLOW’
    CHARACTERISTICS OF FDI :

    Follow competitors

    International product life cycle

    Location

    Contract manufactures

    Assured return on investment


    BENEFITS AND COSTS OF FDI

    FOR HOST COUNTRY


     Capital
     Technology
     Market access
     Increase in domestic investment
     Export promotion
     Generating employment
     Infrastructure
     Social effects
     Formation of clusters
    BENEFITS AND COSTS OF FDI
    FOR HOME COUNTRY

    Inward flow of earnings on a long term basis.


    High salaries for employees.
    Exposure to the foreign market
    THANK YOU

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