Introduction to FDI
Foreign Direct Investment (FDI) broadly encompasses any long-term investments by an entity that is not a resident of the host democracy. Typically, the investment is over a long duration of time and the idea is to energize an initial investment and then subsequently keep expend to leverage the host countrys advantages which could be in the form of access to better (and cheaper) resources, access to a consumer trade or access to talent specific to the host country - which results in the enhancement of efficiency. This long-term relationship benefits both the investor as well as the host country. The investor benefits in getting higher(prenominal) returns for his investment than he would have gotten for the same investment in his country and the host country can benefit by the increased know how or technology transfer to its workers, increased pressure on its domestic assiduity to compete with the foreign entity thus making the industry correct as a whole or by having a demonstration effect on other entities thinking nigh investing in the host country.
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1 AN OVERALL VIEW
The historical punctuate of FDI in India can be traced back with the establishment of eastbound India Company of Britain. British capital came to India during the colonial era of Britain in India. However, researchers could not portray the complete history of FDI pouring in India due to lack of abundant and authentic data. Before freedom major amount of FDI came from the British companies. British companies setup their units in mining sector and in those sectors that suits their own economic and art interest. After Second World War, Japanese companies entered Indian market place and enhanced their trade with India, yet U.K. remained the most dominant investor in India.
Further, after Independence issues relating to...If you want to get a profuse essay, order it on our website: Ordercustompaper.com
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