Foreign CAPITAL
managerial economic
MEMBERS NAME
 DIKSHA(leader) 61022
 TEJAL 61009
 NEELAM 61047
 DIVYA 61049
 URVASHI 61006
 BIJAL 61053
 PRAJYOT 610...
FOREIGN CAPITAL
 Foreign capital has a very significant
role to play in every
economy, regardless of its level of
develop...
 To increase the rate of investment and
capital accumulation, in the case of
developing countries
 to accelerate the eco...
FORMS OF FOREIGN
CAPITAL
Foreign aid commercial borrowings
foreign private investment
non-resident investment and deposits
ROLE OF FOREIGN
CAPITAL
 Investment demand
 Initial stage of development
 Foreign expertise
 Underdeveloped capital ma...
MULTINATIONAL
CORPORATIONS (MNC'S)
 Multi-national Corporations is a recent
form of business organization which
undertake...
 E.g.:- Hindustan lever ltd, P& G India ltd,
Philips, Sony etc
FEATURES OF MNC
 global perspective
 financial strength
 expert management
 employment opportunities
 profit oriented...
ADVANTAGES OF MNCs
 global operations
 sophisticated technology
 international market
 rapid industrial growth
 break...
DISADVANTAGES OF MNCs
 double standards
 discarded technology
 profit maximization
 capital-intensive policies
 adver...
FOREIGN DIRECT
INVESTMENT
Foreign direct investment (FDI) is
investment directly into production in a
country by a company...
FDI IN INDIA
 Starting from a baseline of less than $1
billion in 1990, a recent UNCTAD survey
projected India as the sec...
 According to Ernst and Young, foreign
direct investment in India in 2010 was
$44.8 billion, and in 2011 experienced an
i...
CAUSES OF
RISING FDI IN
INDIA
Government planning.
Source of technology.
Crucial input.
Low cost opportunities.
No barrier...
FOREIGN PORTFOLIO
INVESTMENT
 The foreign exchange management act 2000 defines
foreign portfolio investment as buying and...
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Economic ppt

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Economic ppt

  1. 1. Foreign CAPITAL managerial economic
  2. 2. MEMBERS NAME  DIKSHA(leader) 61022  TEJAL 61009  NEELAM 61047  DIVYA 61049  URVASHI 61006  BIJAL 61053  PRAJYOT 61043
  3. 3. FOREIGN CAPITAL  Foreign capital has a very significant role to play in every economy, regardless of its level of development.  Foreign capital is necessary...........  To support the sustainable development , in the case of developed countries.
  4. 4.  To increase the rate of investment and capital accumulation, in the case of developing countries  to accelerate the economic growth , in the case of less developed countries  to create stable growth of GDP , in the case of underdeveloped countries  to solve the economic problem , in case of less developed countries.
  5. 5. FORMS OF FOREIGN CAPITAL Foreign aid commercial borrowings foreign private investment non-resident investment and deposits
  6. 6. ROLE OF FOREIGN CAPITAL  Investment demand  Initial stage of development  Foreign expertise  Underdeveloped capital market  Balance of payment problems  Advanced know-how  Purchasing capacity
  7. 7. MULTINATIONAL CORPORATIONS (MNC'S)  Multi-national Corporations is a recent form of business organization which undertakes business activities in more then one country. it is also called as Global Enterprise and MNC.  "a multinational corporation is a corporation, which operates, in addition to the country, in which, it is incorporated, in one or more other countries." -Neil.H.Jocoby
  8. 8.  E.g.:- Hindustan lever ltd, P& G India ltd, Philips, Sony etc
  9. 9. FEATURES OF MNC  global perspective  financial strength  expert management  employment opportunities  profit oriented  research and development  foreign trade  foreign direct investment (FDI)
  10. 10. ADVANTAGES OF MNCs  global operations  sophisticated technology  international market  rapid industrial growth  breaks domestic monopolies  change favorable trade  brings the world closer  optimum utilization of resources
  11. 11. DISADVANTAGES OF MNCs  double standards  discarded technology  profit maximization  capital-intensive policies  adverse balance of payments  political influences and interferences  materialistic approach  misuse of natural resources
  12. 12. FOREIGN DIRECT INVESTMENT Foreign direct investment (FDI) is investment directly into production in a country by a company located in another country, either by buying a company in the target country or by expanding operations of an existing business in that country. FDI is channeled mainly through multinational corporations. these investments bring with them benefits like market access, technology , management expertise etc.
  13. 13. FDI IN INDIA  Starting from a baseline of less than $1 billion in 1990, a recent UNCTAD survey projected India as the second most important FDI destination (after China) for transnational corporations during 2010– 2012  As per the data, the sectors which attracted higher inflows were services, telecommunication, construction activities and computer software and hardware.  Mauritius, Singapore, the US and the UK were among the leading sources of FDI.
  14. 14.  According to Ernst and Young, foreign direct investment in India in 2010 was $44.8 billion, and in 2011 experienced an increase of 13% to $50.8 billion.  The world’s largest retailer Wal-Mart has termed India’s decision to allow 51% FDI in multi-brand retail as a “first important step” and said it will study the finer details of the new policy to determine the impact on its ability to do business in India.  However this decision of the government is currently under suspension due to opposition from multiple political quarters.
  15. 15. CAUSES OF RISING FDI IN INDIA Government planning. Source of technology. Crucial input. Low cost opportunities. No barriers or permission.
  16. 16. FOREIGN PORTFOLIO INVESTMENT  The foreign exchange management act 2000 defines foreign portfolio investment as buying and selling of shares, convertible debentures of Indian companies, and units of domestic mutual fund at any of Indian stock exchanges.  Starting up of FPI  In 1992,india opened up its economy and allowed foreign portfolio investment in its domestic stock market.  since then , FPI has emerged as a major source of private capital inflow in this country.  India is more dependent upon FPI as a source of foreign investment.

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