2. Definition
Foreign direct investment is a direct investment into
production or business in a country by an individual or
company of another country, either by buying a company
in the target country or by expanding.
4. Types of FDI’s
• Horizontal FDI arises when a firm duplicates its
home country-based activities at the same value chain
stage in a host country through FDI.
• Platform FDI Foreign direct investment from a source
country into a destination country for the purpose of
exporting to a third country.
• Vertical FDI takes place when a firm through FDI
moves upstream or downstream in different value
chains i.e., when firms perform value-adding activities
stage by stage in a vertical fashion in a host country
5. Methods
The foreign direct investor may acquire voting power of an
enterprise in an economy through any of the following
methods:
• By incorporating a wholly owned subsidiary or company
anywhere
• By acquiring shares in an associated enterprise
• Through a merger or an acquisition of an unrelated
enterprise
• Participating in an equity joint vanture with another
investor or enterprise
7. India has been ranked at the second place in
global foreign direct investments in 2010 and
will continue to remain among the top five
attractive destinations for international
investors during 2010-12 period, according to
United Nations Conference on Trade and
Development (UNCTAD) in a report on world
investment prospects titled, 'World Investment
Prospects Survey 2009-2012'.
8.
9. MEDIA & ENTERTINEMENT
Indian advertising industry stands at the size of US $ 5 billion in 2010,
based on PwC’s India Entertainment and Media Outlook 2011 estimates.
The main components of Indian advertising are:
•Internet advertising which is its fastest-growing segment
•Radio advertising
•Print advertising - the largest segment in the advertising industry
•Television advertising- the second largest segment.
10. Investment Policies
74% FDI: Under the
Broadcasting Carriage Service’s
investment policy, 74 % FDI is
permissible for Teleports, Direct
– to – home (DTH), Cable
Networks {Multi System
operators (MSOs) operating at
National or
State or District level and
undertaking upgradation of
networks towards digitalization
and addressability}, Mobile TV &
Headend-in-the Sky
Broadcasting Services (HITS).
There is automatic route upto
49% investment and government
route beyond 49% and upto 74%.
16. ADVANTAGES
In my point of view FDI in retail is good
for Indian economy. Because of it it grow
fast as well as increase the standard of
living of people. There are several benefits
as under.
1. Increase employment.
2. Customer get good product at
reasonable price.
3. Farmer get enough price for his product.
4. All brand under one roof.
5. There are many option available for
customer to chose best among the various
brand.
6. New technology are come and it helpful
to fulfill customer need.
7. Because of employment the national as
well as per capita income will increase
17. DISADVANTAGES
• It has been observed that the defense of a
country has faced risks as a result of the
foreign direct investment in the country.
• At times it has been observed that certain
foreign policies are adopted that are not
appreciated by the workers of the recipient
country
• Economically backward section of the
host country is always inconvenienced when
the stream of foreign direct investment is
negatively affected.
• The disadvantages of foreign direct
investment occur mostly in case of matters
related to operation, distribution of the
profits made on the investment and the
personnel
18. BARRIERS
Lack of empowered regulators
Cross-media ownership rules
Price regulation in the television industry
Content regulation
Level playing field with incumbents :
Lack of a uniform media policy for foreign investment
Piracy
Tax treatment of foreign broadcasting companies
