people can get informed about FDI

2. Foreign DirectForeign Direct InvestmentInvestment

3. FOREIGN DIRECT INVESTMENTFOREIGN DIRECT INVESTMENT
 Definitions:Definitions:
Foreign direct investment (FDI) is an investment made by a company or
individual in one country in business interests in another country, in the form
of either establishing business operations or acquiring business assets in the
other country, such as ownership or controlling interest in a foreign company.
Investment from one country to another( normally by
companies rather than the government) that involves establishing
operation and acquiring assets, including stakes in other businesses.
Foreign direct investment is an investment in
a business by an investor from another country for which the foreign
investors has control over the company purchased.

6. The Strategic logics Behind FDIThe Strategic logics Behind FDI
Resource Seeking:Resource Seeking: looking for resources at a lower reallooking for resources at a lower real
cost.cost.
Market seeking:Market seeking: secure market share and sales growth insecure market share and sales growth in
target foreign market.target foreign market.
Efficiency seeking:Efficiency seeking: seeks to establish efficient structureseeks to establish efficient structure
through useful factors, cultures, or markets.through useful factors, cultures, or markets.
StrategicStrategic
asset seeking:asset seeking: seeks to acquire assets in foreign firms thatseeks to acquire assets in foreign firms that
promote corporate long term objectives.promote corporate long term objectives.

13. Benefits And Cost Of FDIBenefits And Cost Of FDI
 Benefits to home country:Benefits to home country:
 availability of raw materialsavailability of raw materials
 improvement in balance of paymentimprovement in balance of payment
 revenue to governmentrevenue to government
 Employment generationEmployment generation
 improved political relationsimproved political relations

14. Cont…Cont…
 Benefits to the host country:Benefits to the host country:
 Availability of scarce factors of productionAvailability of scarce factors of production
 Improvement in BOP through imports and exportsImprovement in BOP through imports and exports
 Building of economic and socialBuilding of economic and social
 Fostering of economic linkagesFostering of economic linkages
 Strengthening of the govt. budgetStrengthening of the govt. budget
 Stimulation of the national economyStimulation of the national economy

15. Cont…Cont…
 Cost to the home country:Cost to the home country:
 Cultural and political interferenceCultural and political interference
 Un healthy competitionUn healthy competition
 Over utilization of local resourcesOver utilization of local resources
 Violation of human rightsViolation of human rights
 Threats to local productsThreats to local products

16. Cont…Cont…
 Cost to the host country:Cost to the host country:
 Investment abroad takes awayInvestment abroad takes away
employment opportunitiesemployment opportunities
 It takes away capitalIt takes away capital
 Outflow of factors of productionsOutflow of factors of productions