Foreign Direct Investment (Theories of FDI)Mamta Bhola
the opening up of the national frontiers has led to a tremendous cross border movement of capital. This has led to a large number of MNC's that have invested foreign capital in a number of countries. MNC's through FDI have expanded their business operations to a large extent.
Concept of international business environmentPinki Verma
Presentation on Concept of International Business Environment which includes:
1. Difference between International Business and International Business Environment
2.Difference between Domestic Business and International Business
3.Entry Modes of International Business
4.Nature of International Business
5.Advantages of International Business
6.Classification Of International Business Environment
(a) Micro and Macro Environment
(b) Domestic, Foreign and Global Environment
7.Components Of International Business Environment with examples.
To watch more ppt follow our channel.
MULTINATIONAL CORPORATIONS #2 - Role, Benefits, Advantages & DisadvantagesSundar B N
This PPT includes MULTINATIONAL CORPORATIONS #2 which covers
Benefits to Host Country
Benefits to Home Country
Disadvantages to HOST country
Disadvantages to Home country
Criticism to MNC
Balance of Payment Disequilibrium and CausesNeema Gladys
1.Balance of Payment
The balance of payment of a country is a systematic accounting record of all economic transactions during a given period of time between the residents of the country and residents of foreign countries.
2.Componets of BOP
Current Account
It includes imports and exports of goods and services and unilateral transfer of goods and services.
Capital Account
Under this are grouped transactions leading to changes in foreign assets and liabilities of the country.
3. Accounting Treatment of Items (Debit and Credit Items)
Any item which gives rise to a sale of foreign exchange (an inflow) is recorded as a credit item (+) in the accounts e.g. export of goods and services
Any item which gives rise to the purchase of foreign exchange (an outflow) is recorded as a debit item (-) in the accounts e.g imports of goods and services.
4. BOP Disequilibrium
BOP is a double entry accounting record, then apart from errors and omissions, it must always balance.
The BOP deficit or surplus indicate imbalance in the BOP.
This imbalance is interpreted as BOP Disequilibrium.
A country’s balance of payments is said to be in disequilibrium when its autonomous receipts (credits) are not equal to its autonomous payments (debits).
5.BOP Deficit
A deficit or an unfavorable balance exists when the value of autonomous debit items exceeds the value of autonomous credit items.
6. BOP Surplus
A surplus or a favourable balance exists when the value of autonomous credit items exceeds the value of autonomous debit items.
Foreign Direct Investment (Theories of FDI)Mamta Bhola
the opening up of the national frontiers has led to a tremendous cross border movement of capital. This has led to a large number of MNC's that have invested foreign capital in a number of countries. MNC's through FDI have expanded their business operations to a large extent.
Concept of international business environmentPinki Verma
Presentation on Concept of International Business Environment which includes:
1. Difference between International Business and International Business Environment
2.Difference between Domestic Business and International Business
3.Entry Modes of International Business
4.Nature of International Business
5.Advantages of International Business
6.Classification Of International Business Environment
(a) Micro and Macro Environment
(b) Domestic, Foreign and Global Environment
7.Components Of International Business Environment with examples.
To watch more ppt follow our channel.
MULTINATIONAL CORPORATIONS #2 - Role, Benefits, Advantages & DisadvantagesSundar B N
This PPT includes MULTINATIONAL CORPORATIONS #2 which covers
Benefits to Host Country
Benefits to Home Country
Disadvantages to HOST country
Disadvantages to Home country
Criticism to MNC
Balance of Payment Disequilibrium and CausesNeema Gladys
1.Balance of Payment
The balance of payment of a country is a systematic accounting record of all economic transactions during a given period of time between the residents of the country and residents of foreign countries.
2.Componets of BOP
Current Account
It includes imports and exports of goods and services and unilateral transfer of goods and services.
Capital Account
Under this are grouped transactions leading to changes in foreign assets and liabilities of the country.
3. Accounting Treatment of Items (Debit and Credit Items)
Any item which gives rise to a sale of foreign exchange (an inflow) is recorded as a credit item (+) in the accounts e.g. export of goods and services
Any item which gives rise to the purchase of foreign exchange (an outflow) is recorded as a debit item (-) in the accounts e.g imports of goods and services.
4. BOP Disequilibrium
BOP is a double entry accounting record, then apart from errors and omissions, it must always balance.
The BOP deficit or surplus indicate imbalance in the BOP.
This imbalance is interpreted as BOP Disequilibrium.
A country’s balance of payments is said to be in disequilibrium when its autonomous receipts (credits) are not equal to its autonomous payments (debits).
5.BOP Deficit
A deficit or an unfavorable balance exists when the value of autonomous debit items exceeds the value of autonomous credit items.
6. BOP Surplus
A surplus or a favourable balance exists when the value of autonomous credit items exceeds the value of autonomous debit items.
Charles Hills defines globalization as "The shift towards a more integrated and interdependent world economy". Globalization has two main components - the globalization of markets and the globalization of production.
According to International Monetary Fund, globalization means "the growing economic interdependence of countries worldwide through increasing volume and variety of cross border transactions in goods and services and of international capital flows and also through the more rapid and widespread diffusion of technology. Interdependency and integration of individual countries of the world is also called as globalization”.
International Business Dynamics module 2 by Nagarjun ReddyPNagarjunReddyReddy
Complete detail of Second Module International Business Dynamics contents, Globalization – Supporting Institutions in International Conflict Resolution
Even tho Pi network is not listed on any exchange yet.
Buying/Selling or investing in pi network coins is highly possible through the help of vendors. You can buy from vendors[ buy directly from the pi network miners and resell it]. I will leave the telegram contact of my personal vendor.
@Pi_vendor_247
If you are looking for a pi coin investor. Then look no further because I have the right one he is a pi vendor (he buy and resell to whales in China). I met him on a crypto conference and ever since I and my friends have sold more than 10k pi coins to him And he bought all and still want more. I will drop his telegram handle below just send him a message.
@Pi_vendor_247
when will pi network coin be available on crypto exchange.DOT TECH
There is no set date for when Pi coins will enter the market.
However, the developers are working hard to get them released as soon as possible.
Once they are available, users will be able to exchange other cryptocurrencies for Pi coins on designated exchanges.
But for now the only way to sell your pi coins is through verified pi vendor.
Here is the telegram contact of my personal pi vendor
@Pi_vendor_247
how to sell pi coins at high rate quickly.DOT TECH
Where can I sell my pi coins at a high rate.
Pi is not launched yet on any exchange. But one can easily sell his or her pi coins to investors who want to hold pi till mainnet launch.
This means crypto whales want to hold pi. And you can get a good rate for selling pi to them. I will leave the telegram contact of my personal pi vendor below.
A vendor is someone who buys from a miner and resell it to a holder or crypto whale.
Here is the telegram contact of my vendor:
@Pi_vendor_247
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Empowering the Unbanked: The Vital Role of NBFCs in Promoting Financial Inclu...Vighnesh Shashtri
In India, financial inclusion remains a critical challenge, with a significant portion of the population still unbanked. Non-Banking Financial Companies (NBFCs) have emerged as key players in bridging this gap by providing financial services to those often overlooked by traditional banking institutions. This article delves into how NBFCs are fostering financial inclusion and empowering the unbanked.
Introduction to Indian Financial System ()Avanish Goel
The financial system of a country is an important tool for economic development of the country, as it helps in creation of wealth by linking savings with investments.
It facilitates the flow of funds form the households (savers) to business firms (investors) to aid in wealth creation and development of both the parties
Poonawalla Fincorp and IndusInd Bank Introduce New Co-Branded Credit Cardnickysharmasucks
The unveiling of the IndusInd Bank Poonawalla Fincorp eLITE RuPay Platinum Credit Card marks a notable milestone in the Indian financial landscape, showcasing a successful partnership between two leading institutions, Poonawalla Fincorp and IndusInd Bank. This co-branded credit card not only offers users a plethora of benefits but also reflects a commitment to innovation and adaptation. With a focus on providing value-driven and customer-centric solutions, this launch represents more than just a new product—it signifies a step towards redefining the banking experience for millions. Promising convenience, rewards, and a touch of luxury in everyday financial transactions, this collaboration aims to cater to the evolving needs of customers and set new standards in the industry.
how to sell pi coins in South Korea profitably.DOT TECH
Yes. You can sell your pi network coins in South Korea or any other country, by finding a verified pi merchant
What is a verified pi merchant?
Since pi network is not launched yet on any exchange, the only way you can sell pi coins is by selling to a verified pi merchant, and this is because pi network is not launched yet on any exchange and no pre-sale or ico offerings Is done on pi.
Since there is no pre-sale, the only way exchanges can get pi is by buying from miners. So a pi merchant facilitates these transactions by acting as a bridge for both transactions.
How can i find a pi vendor/merchant?
Well for those who haven't traded with a pi merchant or who don't already have one. I will leave the telegram id of my personal pi merchant who i trade pi with.
Tele gram: @Pi_vendor_247
#pi #sell #nigeria #pinetwork #picoins #sellpi #Nigerian #tradepi #pinetworkcoins #sellmypi
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what is the best method to sell pi coins in 2024DOT TECH
The best way to sell your pi coins safely is trading with an exchange..but since pi is not launched in any exchange, and second option is through a VERIFIED pi merchant.
Who is a pi merchant?
A pi merchant is someone who buys pi coins from miners and pioneers and resell them to Investors looking forward to hold massive amounts before mainnet launch in 2026.
I will leave the telegram contact of my personal pi merchant to trade pi coins with.
@Pi_vendor_247
Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
The secret way to sell pi coins effortlessly.DOT TECH
Well as we all know pi isn't launched yet. But you can still sell your pi coins effortlessly because some whales in China are interested in holding massive pi coins. And they are willing to pay good money for it. If you are interested in selling I will leave a contact for you. Just telegram this number below. I sold about 3000 pi coins to him and he paid me immediately.
Telegram: @Pi_vendor_247
how can i use my minded pi coins I need some funds.DOT TECH
If you are interested in selling your pi coins, i have a verified pi merchant, who buys pi coins and resell them to exchanges looking forward to hold till mainnet launch.
Because the core team has announced that pi network will not be doing any pre-sale. The only way exchanges like huobi, bitmart and hotbit can get pi is by buying from miners.
Now a merchant stands in between these exchanges and the miners. As a link to make transactions smooth. Because right now in the enclosed mainnet you can't sell pi coins your self. You need the help of a merchant,
i will leave the telegram contact of my personal pi merchant below. 👇 I and my friends has traded more than 3000pi coins with him successfully.
@Pi_vendor_247
how to swap pi coins to foreign currency withdrawable.DOT TECH
As of my last update, Pi is still in the testing phase and is not tradable on any exchanges.
However, Pi Network has announced plans to launch its Testnet and Mainnet in the future, which may include listing Pi on exchanges.
The current method for selling pi coins involves exchanging them with a pi vendor who purchases pi coins for investment reasons.
If you want to sell your pi coins, reach out to a pi vendor and sell them to anyone looking to sell pi coins from any country around the globe.
Below is the contact information for my personal pi vendor.
Telegram: @Pi_vendor_247
how to sell pi coins on Bitmart crypto exchangeDOT TECH
Yes. Pi network coins can be exchanged but not on bitmart exchange. Because pi network is still in the enclosed mainnet. The only way pioneers are able to trade pi coins is by reselling the pi coins to pi verified merchants.
A verified merchant is someone who buys pi network coins and resell it to exchanges looking forward to hold till mainnet launch.
I will leave the telegram contact of my personal pi merchant to trade with.
@Pi_vendor_247
Unit -2 lecture-6 (international investment theory)
1. Branch - MBA
International Business Management
DR. APJ ABDUL KALAM TECHNICAL UNIVERSITY
By
Dr. B. B.Tiwari
Professor
Department of Management
Shri Ramswaroop Memorial Group of Professional Colleges, Lucknow
Unit-2: Lecture – 6
International Trade Theories:
International Investment Theories
2. Origin of the theory: Introduction
International investment theory explains the flow of investment capital into and
out of a country by investors who want to maximize the return on their
investments.
One of the major factors that influence international investment is the potential
return on alternative investments in the home country or other foreign markets.
Theories of international investment can essentially be divided into two
categories: Micro (industrial organization) theories and Macro (cost of
capital) theories
3. Cont…..
• Broadly there are two types of foreign investment, namely, foreign direct investment
(FDI) and foreign portfolio investment (FPI).
• foreign direct investment : FDI refers to investment in a foreign country where the investor
retains control over the investment. It typically takes the form of starting a subsidiary, acquiring
a stake in an existing firm or starting a joint venture in the foreign country. Direct investment
and management of the firms concerned normally go together.
• Portfolio investment : If the investor has only a sort of property interest in investing the
capital in buying equities, bonds, or other securities abroad, it is referred to as portfolio
investment.
• That is, in the case of portfolio investments, the investor uses capital in order to get a return on
it, but has not much control over the use of the capital.
4. International Investment Theories:
Theory of Capital Movements.
Market Imperfections theory
Internationalization Theory
Location Specific Advantage Theory
Eclectic Theory Free Trade
5. Theory of Capital Movements
• Capital is one of the factors of production (land, labor and
entrepreneur etc.)
• International capital movement is any transfer of capital between
countries (with goal of obtaining extra profit)
• It can be in the form of physical capital and financial capital
• The profit can be interest rate, dividend, share, on profit of corporation
abroad or rent.
6. Cont……
• The term international capital movement refers to borrowing and lending
between countries. These capital movements are recorded in the capital account
of the balance of payment.
• One of the most important developments in the world economy in the 1990s has
been the spectacular surge in international capital flows. These flows have
emanated from a greater financial liberalisation, improvement in information
technology, emergence and proliferation of institutional
7. Classification of International Capital Movements:
• Home and Foreign Capital
• Government and Private Capital
• Short-Term and Long-Term Capital
• Direct and Portfolio Capital
8. Factors Influencing International Capital Movements:
• Rate of Interest
• Marginal Efficiency of Investment
• Bank Rate
• Speculation
• Foreign Capital Policy
• Economic and Political Conditions
• Exchange Control Policy
• Tax Policy
9. Market Imperfections theory
An imperfect market refers to any economic market that does not meet the rigorous
standards of the hypothetical perfectly—or purely—competitive market.
Pure or perfect competition is an abstract, theoretical market structure in which a series
of criteria are met.
Imperfect markets are characterized by having competition for market share, high
barriers to entry and exit, different products and services, and a small number of buyers
and sellers.
Market structures that are categorized as imperfect include monopolies, oligopolies,
monopolistic competition, monopsonies, and oligopsonies.
10. Cont…
• Market imperfections theory is a trade theory that arises from international
markets where perfect competition doesn't exist. In other words, at least one of
the assumptions for perfect competition is violated and out of this is comes what
we call an imperfect market. We know that a perfect market isn't really
attainable. Even in the United States, we have imperfect markets. Remember, the
assumptions for a perfect market are:
• Buyers and sellers are both price takers
• Companies sell virtually identical products
• Buyers and sellers have perfect information
• Multiple companies owns a small market share
• There is no barrier of entry or exit
11. Internationalization Theory
Explains the process by which firms acquire and retain one or more value-chain
activities inside the firm – retaining control over foreign operations and avoiding the
disadvantages of dealing with external partners
The concept of internalization theory is to transfer the superior knowledge to foreign
subsidiary and obtain higher return or fee on its investment. It comes into contract and
provide authority to use its competitive advantages in the form of license, franchise or
other form.
Explains why a firm would choose to enter a foreign market via FDI rather than
exploit its ownership advantages.
Transaction costs- costs of entering into transaction(negotiating, monitoring and
enforcing a contract) Eg: Honda
12. Difference between Internationalization and Globalization
• Globalization refers to the processes by which a company brings its business to the
rest of the world. Internationalization is the practice of designing products, services
and internal operations to facilitate expansion into international markets
• Example: A company that manufacture hair dryers must ensure that their products
are compatible with different watts used in different countries.
13. • Even with strong protections firms protect their knowledge through secrecy. Instead of
licensing their knowledge to independent local producers, firms exploit it themselves in
their own production facilities.
• Most applications of the theory focus on knowledge flow. Proprietary knowledge is easier
to appropriate when intellectual property rights such as patents and trademarks are
weak.
• Internalization occurs only when firms perceive the benefits to exceed the costs. When
internalization leads to foreign investment the firm may incur political and commercial
risks due to unfamiliarity with the foreign environment. These are known as ‘costs of
doing business abroad’, arising from the ‘liability of foreignness’. When such costs are high
a firm may license or outsource production to an independent firm; or it may produce at
home and export to the country instead.
Cont…
14. Location Specific Advantage Theory
• Location advantages are the ones that a particular country provide that might create incentives
for a firm to move into that country. So, the difference with the ownership advantages that we
covered before, is that ownership advantages are the ones created within the firm.
• For example: a lumber company in Oregon has a location-specific advantage to a lumber
company in Arizona because there are simply more trees in Oregon.
• A company's business strategy as well as external developments such as e.g. geopolitical
trends lead to locational challenges in terms of creating or reducing new operations or facilities.
• Location plays a huge role in attracting and retaining the best employees, many of whom keep
a close eye on where they're based in order to optimize work-life balance. Good location decisions
can significantly boost a company's long-term performance.
15. factors that one should consider when choosing the best business location:
• Style of Operation. Is your business going to be formal or elegant?
• Demographics
• Foot Traffic
• Parking and Accessibility
• Competition
• Site's Image and History
Cont…
16. • Published by John H. Dunning in 1979and refined by him several times since then (1988, 1993), is a
key contribution to the separation of international business studies
• The eclectic paradigm is a business approach that analyses whether a company should make
a foreign direct investment.
• The eclectic paradigm is a theory that provides a three-tiered framework for companies to follow.
They follow the frameworks when deciding whether they should invest abroad.
• The eclectic paradigm theory posits three kinds of advantages for a multinational company:
1. Ownership.
2. Location.
3. Internalization.
Eclectic Theory: Dunning (OLI model )
17. Eclectic Theory: Dunning (OLI model )
FDI will occur when 3 conditions are satisfied:
Ownership Advantage:
• A firm must own some unique competitive advantage that overcomes competitions. firm’s specific competencies such as
knowledge, skills, capabilities, relationships, or physical assets.
• Eg: Brand name
Location Specific Advantage:
• Business should be done in a more profitable foreign location than a domestic one. specific advantages that exist in the host
market, such as natural resources, low-cost labor, or skilled labor.
• Eg: Labour, raw materials
Internalization Advantage:
• The firm must benefit more from controlling foreign business activity rather than hiring other local companies to provide
service. the degree of control over foreign operations, such as foreign-based manufacturing, distribution, or other value
chain activities.
• Eg: Hiring locals
18. Example: Sony in China
• Ownership-specific advantages: Sony possesses a huge stock of
knowledge and patents in the consumer electronics industry, as
represented by products like the Play station.
• Location-specific advantages: Sony desires to manufacture in
China, to take advantage of China’s lowcost, highly knowledgeable
labor.
• Internalization advantages: Sony wants to maintain control over its
knowledge, patents, manufacturing processes, and quality of its
products. Thus, Sony entered China via FDI.