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    Foreign Direct Investment

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    Jateen Kumar Ojha
    Foreign direct investment (FDI) occurs when an entity in one country makes a controlling investment in a business or property in another country. It provides benefits like diversifying investor portfolios, promoting long-term lending, and providing financing and technology to developing countries. However, FDI is not always suitable for strategic industries and investors may feel less attached. There are different types of FDI including horizontal, vertical, conglomerate, and platform investments.

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    Foreign Direct Investment

    Uploaded by

    Jateen Kumar Ojha
    18 views9 pages
    Foreign direct investment (FDI) occurs when an entity in one country makes a controlling investment in a business or property in another country. It provides benefits like diversifying investor portfolios, promoting long-term lending, and providing financing and technology to developing countries. However, FDI is not always suitable for strategic industries and investors may feel less attached. There are different types of FDI including horizontal, vertical, conglomerate, and platform investments.

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    Foreign direct investment (FDI) occurs when an entity in one country makes a controlling investment in a business or property in another country. It provides benefits like diversifying investor portfolios, promoting long-term lending, and providing financing and technology to developing countries. However, FDI is not always suitable for strategic industries and investors may feel less attached. There are different types of FDI including horizontal, vertical, conglomerate, and platform investments.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    18 views9 pages

    Foreign Direct Investment

    Uploaded by

    Jateen Kumar Ojha
    Foreign direct investment (FDI) occurs when an entity in one country makes a controlling investment in a business or property in another country. It provides benefits like diversifying investor portfolios, promoting long-term lending, and providing financing and technology to developing countries. However, FDI is not always suitable for strategic industries and investors may feel less attached. There are different types of FDI including horizontal, vertical, conglomerate, and platform investments.

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    Foreign Direct Investment

    What is Foreign
    direct Investment?
    A foreign direct investment (FDI) is an
    investment in the form of a controlling
    ownership in a business, in real estate or in
    productive assets such as factories in one
    country by an entity based in another country.

    It is thus distinguished from a foreign portfolio


    investment or foreign indirect investment by a
    notion of direct control.
    Pros of
    Foreign Direct Investment
    Diversifies pROMOTES lONG term Provides finance to Technology to
    Investor Portfolio Lending developing countries developing Countries
    cons of
    Foreign Direct Investment
    NOT SUITABLE STRATEGICALLY Investors may have less unethical access to
    FOR IMPORTANT INDUSTRIES more attachment local markets
    TYPES OF FDI

    H V C P
    Horizontal Vertical Conglomerate Platform
    In this business In this business In this business In this business
    expands its inland expands into another undertakes unrelated expands into another
    operations to another country by moving to a business activities in a country but the output
    country to undertake different level of the foreign country. from the business is
    same activities . supply chain. then exported to a
    third country.
    Foreign Direct
    Investment
    (As per Indian Context)
    Top 5 FDI Sourcing
    Nation

    27% 17.9% 16% 7.9% 7.3%

    SINGAPORE USA MAURITIUS NETHERLAND SWITZERLAND


    Top 5 Sectors

    24.6% 12.1% 11.9% 7.7% 5.5%

    SOFTWARE SERVICE AUTOMOBILE TRADING CONSTRUCTION


    THANK
    YOU.

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