Foreign Direct Investment Research Paper Topics

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Not to mention that Singapore ranks as one of the least corrupt country in the world. Essentially,
there are several tests used to determine the stationary in practice. Iran is one such case where FDI
has mostly remained a political issue despite the fact that Iran held one of the largest oil reserves in
the world. The result is also net gains in employment at the aggregate level See Full PDF Download
PDF See Full PDF Download PDF Related Papers Foreign Direct Investment: Impact on Indian
Economy (Special International Research Journal Commerce arts science With the initiation of
globalization, developing countries, particularly those in Asia, have been witnessing a immense surge
of FDI inflows during the past two decades. Leonard (2006) talks about the effect of FDI on wages
and labor values in developing nations. The companies want to extend the territory of the business
and the best way to do it is by investing in the foreign companies. Nevertheless, it is difficult to
attract FDI into the domestic economy. FDI In Small Scale Sector (SSI) Units A small-scale unit
cannot have more than 24 per cent equity in its paid up capital from any industrial undertaking,
either foreign or domestic. The firm might even establish its own sales company to import in its own
name. To learn how to manage your cookie settings, please see our Cookie Policy. The examination is
basically founded on ten long time optional information for the time frame from April 2006 to
March 2016. This project would not have been successful without her help and continuous guidance
throughout. In terms of education, the government emphasizes technical and vocational education
below tertiary level to provide a growing pool of technically competent workers, along with rapid
expansion of engineering, business and computer science education at the tertiary level. A key feature
of foreign direct investment is that it establishes effective control of the foreign business or at least
substantial influence over its decision making. India followed a socialist-inspired approach for most
of its independent history, with strict government control over private sector participation, foreign
trade, and foreign direct investment. Burdensome regulations and performance requirements for FDI
can offset a generous package of tax incentives. The Ordinary Least Squares, Cointegration and
Error Correction Technique (ECT) were used for the estimation. Corporations from the originating
country gain a significant financial foothold in the host country. A disadvantage of FDI, however, is
that it involves the regulation and oversight of multiple governments, leading to a higher level of
political risk. The largest flows of foreign investment occur between the industrialized countries
(North America, Western Europe and Japan).But flows to non-industrialized countries are increasing
sharply. The Chinese economy is currently smaller than the U.S. economy in nominal terms, but FDI
as a percentage of GDP was 1.7% for China as of 2020, compared with 1.0% for the U.S. For
smaller, dynamic economies, FDI as a percentage of GDP is often significantly higher: e.g., 110% for
the Cayman Islands, 109% for Hungary, and 34% for Hong Kong (also for 2020). Application for all
FDI cases, except Non-Resident Indian (NRI) investments and 100% Export Oriented Units
(EOUs), should be submitted to the FIPB Unit, Department of Economic Affairs (DEA), Ministry of
Finance. Data collection will be done in both qualitative as well as quantitative manner. Without
their undying help and guidance, this project would not be what it is. Hence, political risk in India is
practically absent. The study uses the unrestricted VAR to generate impulse responses to find the
impact of one standard deviation innovation change in one variable on other. Legislation was
introduced in the early 1970s that would have put an end to the tax incentives of FDI. There are also
a number of changes in the country’s investment laws and regulations. The first empirical chapter
attempts to find an answer to the question whether FDI contributes positively to the economic
performance of the destination country. There are instances in which effective controlling interest in
a firm can be established by acquiring less than 10% of the company’s voting shares.
Sultanuzzaman et al. (2018) examined the short-run and long-run relationship among FDI inflows,
Export and Economic Growth using ARDL Bounds Model in Sri Lanka covering 1980-2016. The
structurally weak, vulnerable and small economies with limited market size have been subjected to
insufficient FDI inflows to eliminate the saving gaps. Even if domestic saving is sufficient in the
internal market, they need to have convertible external saving to import the items used in their
production process. Sader, F 2000, Attracting foreign direct investment into infrastructure: Why is it
so difficult, World Bank, Washington. This finding is highly relevant in the contemporary context, as
this relationship is derived for India based on recent data. It therefore has a strong record of actively
encouraging the flow of FDI into the country. FDI Impact on Domestic Enterprises Foreign invested
companies are likely more productive than local competitors. India is a major exporter of highly-
skilled workers in software and financial services, and software engineering. Other investors use
foreign direct investment from a speculative approach (Blaine 2008, p. 36). They use this approach
of investment as a way of spreading the risks. Paper shows the advantage and disadvantage of FDI
and also the growth in India of FDI. The requirements set by the government or local stakeholders in
one country may vary a great deal from that in another country. Commercial Risk Commercial risk
exists in any business ventures of a country. But for executives in SME’s, it is still just another
buzzword. Through its fast track working it has established its reputation as a body that does not
unreasonably delay and is objective in its decision making. A slow appreciation of the currency will
increase the confidence of those who are investing in Singapore and help to attract more investment.
Please include what you were doing when this page came up and the Cloudflare Ray ID found at the
bottom of this page. Is the process whereby residents of one country (the source country) acquire
ownership of assets for the purpose of controlling the production, distribution, and other activities of
a firm in another country (the host country). Louis Region John See - Narrative Story John See -
Narrative Story Evaluation and management of patients with Dyspepsia.pptx Evaluation and
management of patients with Dyspepsia.pptx Sample essay on impact of foreign direct investment
on the nigerian economy 1. An addition to the capital stock will have a larger effect on per-capita
income. Singapore has achieved world-class status in information and communications technology
(ICT), while the government has ensured a reliable supply of power and water. Chart of foreign
direct investment in Kuwait for last 15 years. These include white papers, government data, original
reporting, and interviews with industry experts. Using US dollars, however, trade growth was fairly
maintained in 2007 and 2008. Foreign investors can buy up to 40% of the equity in private banks,
although there is condition that stipulates that these banks must be multilateral financial
organizations. This paper studies the impact of foreign direct investment on the Indian stock market.
First, the foreign exchange regime is highly liberal and freely allows repatriation of capital and
remittance of profits, dividends, interests, royalty payments and technical licensing fees, as well as
the free importation of goods and services for consumption, investment and production purposes. If
the acquisition of shares directly or indirectly results in the acquisition of a company listed on the
stock exchange, it would require the approval of the Security Exchange Board of India. Essentially,
there are several tests used to determine the stationary in practice. Therefore according to theory we
know that higher saving rates. There are instances in which effective controlling interest in a firm can
be established by acquiring less than 10% of the company’s voting shares.
This theory is non realistic as it does non set into consideration export selling and behavior of
Multinational Corporations that operates under progressive markets. We also reference original
research from other reputable publishers where appropriate. This program, sometimes referred to as
the Belt and Road Initiative, involves a commitment by China to substantial FDI in a range of
infrastructure programs throughout Africa, Asia, and even parts of Europe. The Ordinary Least
Squares, Cointegration and Error Correction Technique (ECT) were used for the estimation.
However, it has seen that the findings have been different from country by country. A: Avoid tariffs
and quotas Access to cheap inputs Reduce transportation costs Local management Take advantage of
government subsidies Reduce economic exposure Diversification. Question for Today: Why does
investment capital flow from some economies to others. The country employed free trade agreements
in 2009, which were responsible for the creation of a free trade zone in the country (World Bank,
“World Trade Indicators” 1). The investors are only required to notify the Regional office concerned
of RBI within 30 days of receipt of inward remittances and file the required documents with that
office within 30 days of issue of shares to foreign investors. The Equation at none shows the p-value
of 0.000 in both trace and Lmax test and confirming one co-Integrating vector and there is a long-
run relationship among variables and hence the null hypothesis of no Co-Integration is rejected.
Jensen (2004) is of the view that institutional lending by supernatural institutions such as IMF has
very complex and perplexing impacts on the economic performance of the countries due to
institutional interference and policy dictations made by such institutions lower the flow of foreign
direct investments into the developing countries. The middle income countries have not received a
steady inflow of foreign direct income coming their way. Three models were executed to calculate
the short-run and long-run coefficients. Over the past decade, the direction of Foreign direct
investment (FDI) in to and from Taiwan has experienced spectacular changes. Non-salary costs
associated with labor. 7. 7 Intangible Assets Internalization theory of FDI: MNEs conduct FDI in
order to retain control of intangibles while enjoying benefits of larger markets. In this approach, the
investor will identify a relevant company that is already in existence and form a partnership with it.
The examination is basically founded on ten long time optional information for the time frame from
April 2006 to March 2016. The key interest revolves around the complementary or substituting role
of FDI in the stock market development of India. Since that time FDI has spread to become a truly
global phenomenon, no longer the exclusive preserve of OECD countries. This explains that during
regimes of high-interest rates, the volume of. In an FDI, the capital inflow is translated into
additional production. Etale and Etale (2016) examined the relationship between Export, FDI and
Economic Growth using Johansen cointegration and VECM tests covering 1980-2013 in Malaysia.
But for executives in SME’s, it is still just another buzzword. One of the most common methods of
foreign direct investment that is used by large companies is mergers and acquisition. Essentially,
Turkey is actually quite a good position in attracting FDI into the domestic market. Issuu turns PDFs
and other files into interactive flipbooks and engaging content for every channel. Foreign direct
investment (FDI): a firm invests directly in foreign facilities. In a green-field investment, a parent
company creates a new operation in a foreign country from the ground up. New investment by an
existing collaborator in India A foreign investor with an existing venture or collaboration (technical
and financial) with an Indian partner in particular field proposes to invest in another area, such type
of additional investment is subject to a prior approval from the FIPB, wherein both the parties are
required to participate to demonstrate that the new venture does not prejudice the old one. They
believe that in case there is a recession in the United States, their operations in other countries will
cushion their investment in the United States, thereby eliminating serious financial loss that may be
incurred if most of the investment were to be in the same country.
It is reasonable to say that the model of economic growth initiated by Robert Solow in 1956 has had
an elementary impact on development economics. The outcomes of Singapore's strategies at
attracting inward FDI Recent FDI Since 2003, one of the most active sectors in attracting FDI is the
chemical sector. H0: The nature of FDI in Iran is driven largely by the political sentiments for and
against the country? Embed Host your publication on your website or blog with just a few clicks.
Mobilizing International Resources for Development in the ESCWA Region Riad Meddeb Division
on Investment and Enterprise. REFERENCES: Ijaz Nabi and Manjula Luthria. (2002) Building
competitive firms, incentives and capabilities, Washington, DC, The World Bank. By continuing
we’ll assume you’re on board with our. The final decision to invest is reached after considerable
series of vetting of potentially viable investment destinations. As it is, entering the consumer market
involves some kind of gamble and hence involves commercial risk Risk Due To Terrorism In the
recent past, India has witnessed several terrorist attacks on its soil which could have a negative
impact on investor confidence. Ownership share amounting to less than that stated above is termed
as portfolio investment and is not categorized as FDI. FDI is one of the important source of
development in the developing countries, it help in bring close the different economies of the country
by investing resources, technology in the host country. This analysis paper aims to examine the
impact of FDI on the Indian economy, significantly when 2 decades of economic reforms, and
analyzes the challenges to position itself favorably within the international competition for FDI. The
study is descriptive in nature and information is collected from secondary sources. These countries
had lesser amounts of commercial bank obligations, which again had been caused by the absence of
proper financial markets, as well as the fact that their economies were not open to foreign direct
investment. FDI is more preferred to the FII as they are considered to be the most beneficial kind of
foreign investment for the whole economy. Some of these reasons are clearly envisioned in the case
study on Genting International and includes the fact that transnational ownership give owners of
companies the right and opportunity of benefiting from labor and investment laws that apply to both
national companies and international companies. This is 100% legal. You may not submit
downloaded papers as your own, that is cheating. Also you. SME’s in particular are now focusing on
access to markets, access to expertise and most of all access to technology. Despite globalization, the
essential role of foreign direct investment (FDI) in economic development has not changed. FDI or
Foreign Direct Investment is any form of investment that earns interest in enterprises which function
outside of the domestic territory of the investor. An integral part of capital market is the stock
market, the development of which is linked with the country's level of savings, investment and the
rate of economic growth. According to history the United States was the leader in the FDI activity
dating back as far as the end of World War II. Exploring the link between foreign direct investment
and multinational enterp. Generally, most people are always of the view that foreign direct. Elo’s
result 2023: Return on investment increased to 6 per cent and cost effi. These reforms played an
important role in capital formation in stock markets and developments in the economy. Absoluteland
0.2 productive units to produce 1 X 0.3 productive units to produce 1 Y Relativeland 0.4 productive
units to produce 1 X 0.5 productive units to produce 1 Y. A pro-business government policy
environment and high-quality civil service complements Singapore's excellent infrastructure and
public capital. The lists are comprehensive and cover most industries of interest to foreign
companies. Ensuring Growth from Organizational Learning MNEs exposed to multiple stimuli,
developing: Diversity capabilities Broader learning opportunities Exposed to: New markets New
practices New ideas New cultures New competition The Impact of FDI on the Host Country
Employment Firms attempt to capitalize on abundant and inexpensive labor.
Indian Economic Review. Vol.XXXXII, No.2, pp: 177-190. Moreover, the export revenues depend
on the productivity and efficiency levels of the economy. The Johansen co integration test results
indicate that all the variables have a long-run relationship of the same order. The investors are
required to notify the Regional office concerned of RBI of receipt of inward remittances within 30
days of such receipt and will have to file the required documents with that office within 30 days
after issue of shares to foreign investors. Another factor to be considered before deciding on where
to invest in the stability of a currency of a country, if a currency fluctuates against the major
currency by a large range then it wouldn't be good to invest in that country. The paper makes an in-
depth and impartial assessment of the entire gamut of issues concerned with retail FDI. The
government also introduced incentives such as land and tax holidays of up to ten years for
companies willing to operate in specific industries within the economy. The threshold for an FDI that
establishes a controlling interest, per guidelines established by the Organisation for Economic Co-
operation and Development (OECD), is a minimum 10% ownership stake in a foreign-based
company. The Correlation shows that there is strongly positive correlation between FDI and Sensex
and weak negative correlation between FII and Sensex. A comprative study on return of mutual fund
and insurance ulips in indian con. Illustrate the benefits of international diversification. 2. Motives for
Direct Foreign Investment: Revenue Related Motives. Not each and every product or service is
profitably accepted in the market. Investor Presentation Medirom Healthcare Technologies Inc. The
total flow of FDI from Netherlands to India came to Rs. 1, 78,047 crores between 1991 and 2002.
This means that individuals can directly participate in foreign direct investment as long as they
follow the set criteria for investment. In addition, Singapore's productivity increased fastest in those
industries in which FDI was concentrated. Is the process whereby residents of one country (the
source country) acquire ownership of assets for the purpose of controlling the production,
distribution, and other activities of a firm in another country (the host country). The ARDL Bounds
Model and Granger Causality test were used to estimate the short-run and long-run relationship
between FDI, GDP and Export. The decision of the account is that every bit long as the projected
accrued hereafter net income borders warrants present outgo, a undertaking is said to be feasible.
Wal-Mart Canada claims that nine out of 10 Canadians shop at its stores, with 1.1 million customers
a day. The methodology involved in this research study would include both quantitative as well as
qualitative research approaches. Relationship between foreign direct investment and corporate
governance There is a close relationship between foreign direct investment and corporate governance
based on the definitions given above. However, due to their technological superiority as well as
implication of best practices, receiver countries often experience economic growth as a result. Service
FDI requires building service facilities or an investment foothold via capital contributions or building
office facilities. The offers that appear in this table are from partnerships from which Investopedia
receives compensation. Schwarz Information Criteria (SIC) was used to determine the optimal lag
orders for all variables as well. Part I: Theory and Measurement of FDI Part II: Structural Issues
Related to the Impact of FDI Part III: Analytical and Policy Issues. Further, an attempt is made to
develop an understanding of the dynamics of the trading behaviour of FDIs and effect on the Indian
stock market. From September 14, 1992 with suitable restrictions, FIIs were permitted to invest in all
the securities traded on the primary and secondary markets, including shares, debentures and
warrants issued by companies which were listed or were to be listed on the Stock Exchanges in
India. The companies want to extend the territory of the business and the best way to do it is by
investing in the foreign companies.

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