Factors that promoting developing economies

International trade :-
• developing countries today are much more globally integrated
by trade.

• trade is one of the powerful forces of economic growth

Production sharing / global sourcing:-

•Different stages of manufacturing a product in different
countries.

•Technical development and designing sharing.

International investment and production:-
• foregien direct investment.
• foregien institutional investment.

Cross border merger and acquisition:-

• companies acquire by other countries and started with new

innovation and advanced technology.

Transplants:-
• production in the foreign market instead of exporting
products manufactured in the home country.
Liberalization:-
• with economic liberalization investment in the infrastructure
and industrial sectors has increased.
competition will increase than more production will produced.

Globalization:-
• interdependence of countries worldwide .
• increasing volume and veriety of cross border transaction in
goods and services.
• more rapid and widespread diffusion of technology.
Impact of US economy on indian economy

•The Wyndham Group of US will be partnering with Bangalore-based Royal

Orchid Hotels to open 10 Ramada hotels across the country.

•Merck & Co aims to become the largest pharmaceutical company in the

Indian vaccines market by 2013.

•After buying a 100 per cent stake in OCM Ltd for US$ 35 million, W.L. Ross
& Co is planning to invest in SpiceJet.

•Coca Cola India plans to invest US$ 250 million in India for equipment
purchases, brand promotion and marketing, over the next three years. The
company has already invested over US$ 1 billion in India.
•The American aerospace industry will be investing in the development of
infrastructure in India's aviation, after selling aircraft and components to
India.

•GE Healthcare is planning to invest US$ 200 million in India’s rural markets
for diagnostics and disease monitoring equipments such as magnetic
resonance imaging (MRI), ultrasound, computed tomography (CT
scanners),and X-rays.

•Texas Chicken, the chicken fast-food brand of the US-based Church's

Chicken, is planning to enter the fast-food market in India.
Investments by Indian companies in US span across diverse industrial
sectors such as steel, airlines, pharmaceuticals, auto parts, healthcare,
hotels, chemicals and information technology.

•Tata Consultancy Services (TCS) acquired the back-office operations of

Citigroup for US$ 505 million to become the second-largest BPO player
globally, after IBM.

•The Canadian subsidiary of Essar Steel Holdings Ltd is increasing its

production to 4 million tonnes (mt) by March 2009 with an investment of 170
million Canadian dollars as capital expenditure,
•Reliance Industries USA has bought a polyester manufacturing facility in
North Carolina for about US$ 12.2 million from Unifi Kinston and plans to
invest US$ 215 million in that company.

•GMR Infrastructure has bought a 50 per cent equity stake in the US-based
power utility, InterGen, for US$ 1.1 billion.

•Ranbaxy Fine Chemicals (RFCL) has acquired the US-based speciality

chemicals firm, Mallinckrodt Baker, in a US$ 340 million deal.
Benefit of fdi

BENEFITS TO HOST COUNTRY

•Resource-transfer effects
•Employment effects
•Effects on competition & economic growth

BENEFITS TO HOME COUNTRY

•Inward flow of foreign earnings
•Employment benefits
•The reverse resource-transfer effect
India-australia trade:-

Insurance and banking sectors, Mining,pharma,healthcare,

Green building.

•Indian investments and presence in some sectors are high.

For example, the Adani Group made a big investment of about
$2.7 billion recently in Queensland.

•The Tata Group has invested in a geothermal energy project in

South Australia
Japan to help India launch 24 green cities:-

The cities will include optimised energy supplies, 24-hour

drinking water supply, bicycle and walking tracks, and waste
and water recycling systems

Top Japanese companies like Hitachi, Mitsubishi and Toshiba

are expected to be involved in designing and building eco-
friendly towns along the DMIC that will pass through Uttar
Pradesh, Delhi, Haryana, Rajasthan, Gujarat and Maharashtra.