ManagementParadise.com : Worlds Leading Management Portal. MBA | Classroom, Boardroom and Beyond


Go Back   ManagementParadise.com Forums - Your MBA Online Degree Program and Management Students Forum for MBA,BMS, MMS, BMM, BBA, students & aspirants. > Projects HUB for Management Students ( MBA Projects and dissertations / BMS Projects / BBA Projects > Resolve Your Query - Get Help and discuss Projects > Financial Management ( FM )

OBJECTIVES OF FOREIGN DIRECT INVESTMENT'S AND PI

OBJECTIVES OF FOREIGN DIRECT INVESTMENT'S AND PI

Discuss OBJECTIVES OF FOREIGN DIRECT INVESTMENT'S AND PI within the Financial Management ( FM ) forums, part of the Resolve Your Query - Get Help and discuss Projects category; 1. Sustaining a high level of investment - Since the underdeveloped countries want to industrialized themselves within a short period ...

Reply

 

LinkBack Thread Tools Display Modes
Advertisements
OBJECTIVES OF FOREIGN DIRECT INVESTMENT'S AND PI
Old
 (1 (permalink))
Abhijeet S
abhishreshthaa is a splendid one to beholdabhishreshthaa is a splendid one to beholdabhishreshthaa is a splendid one to beholdabhishreshthaa is a splendid one to beholdabhishreshthaa is a splendid one to beholdabhishreshthaa is a splendid one to beholdabhishreshthaa is a splendid one to behold
 
abhishreshthaa
Operations Manager at Management Paradise
Management Paradise Guru
 
Status: Offline
Posts: 7,045
Join Date: May 2010
OBJECTIVES OF FOREIGN DIRECT INVESTMENT'S AND PI - September 10th, 2010


1. Sustaining a high level of investment - Since the underdeveloped countries want to industrialized themselves within a short period of time, it becomes necessary to raise the level of investment substantially. This requires, in turn, a high level of savings.


However, because of general poverty of masses, the savings are often very low. Hence emerges a resource gap between investment and savings. This gap has to be filled through foreign capital.

2. Technological gap - The under developed countries have very low level of technology as compared to the advanced countries. However they possess strong urge for industrialization to develop their economies and to wriggle out of the low level equilibrium trap in which they are caught.


This raises the necessity for importing technology from advanced countries. Such technology usually comes with foreign capital when it assumes the form of private foreign investment or foreign collaboration. In the Indian case technical assistance received from abroad has helped in filling the technological gap through the following three ways:

(a) Provision for expert services

(b) Training of Indian personnel

(c) Education research and training institution in the country



3. Exploitation of natural resources - A number of underdeveloped countries possess huge mineral resources, which await exploitation. These countries themselves do not possess the required technical skill and expertise to accomplish this task. As a consequence, they have to depend upon foreign capital to undertake the exploitation of their mineral wealth.



4. Undertaking the initial risk - Many under developed countries suffer from acute private entrepreneurs. This creates obstacles in the programs of industrialization. An argument advanced in favour of the foreign capital is that it undertakes the risk of investment in host countries and thus provides the much-needed impetus to the process of industrialization.


Once the programme of industrialization gets started with the initiative of foreign capital, domestic industrial activity starts picking up as more and more of the host country enter the industrial field.



5. Development of basic economic infrastructure - It has been observed that the domestic capital of the under developed countries is often too inadequate to build up the economic infra structure of its own. Thus these countries require the assistance of foreign capital to undertake this task.


In the latter half of the 20th century, especially during the last 3-4 decades, international financial institutions and many governments of advanced countries have made substantial capital available to the under developed countries to develop their system of transport and communications, generation and distribution of electricity, development of irrigation facilities, etc.

6. Improvement in balance of payments position - In the initial phase of the economic development, the under developed countries need much larger imports (in the form of machinery, capital goods, industrial raw materials, spares and components), then they can possibly export. As a result, the balance of payments generally turns adverse. This creates a gap between the earnings and foreign exchange. Foreign capital presents short run solution to the problem.

This shows that the economic development of an underdeveloped country should obviously receive a boost as a result of foreign capital.
Accordingly, if foreign capital is obtained on easy terms and without any ‘strings’, it should be welcomed. However, as noted by John P. Lewis, “despite denials, the fact is that all foreign aid carries strings and every foreign aid relationship involves bargaining, however genteel, between aiding and receiving parties.”


Advertisements


Help Others > Network > Grow


Work with us part time/full time as forum moderator. Email us your resume on careers @ managementparadise.com PLS PRESS THANKS BUTTON IF U LIKED MY POST.

Friends: (0)
Reply With Quote
#  
MBA
Your Friendly Helper
 
www.ManagementParadise.com
Rep Power: 10MBA Helper
Automatic Reply for links related to your post

Hello.

I am your friendly Helper. Check the related links below which might be of your interest.

Not a Member Yet ?? Sign Up Now. Click Here

Looking for something? Search the Forums

Need Help on your Research Report ? Ask for Help or Help Others and create your network. Give back to the community by sharing your knowledge in terms of notes, research reports, discussions, articles etc..

Help Yourself and Help Others


Advertisements

Related to OBJECTIVES OF FOREIGN DIRECT INVESTMENT'S AND PI
 

Similar Threads

Thread Thread Starter Forum Replies Last Post
FOREIGN DIRECT INVESTMENT PPT rahulverma03 Financial Management 25 August 21st, 2011 11:22 AM
foreign direct investment nileshpawar91 Upload / Download Banking and Insurance Projects and Notes 3 January 11th, 2010 08:29 PM
Foreign Direct Investment Kumar Kum General Talks 1 May 18th, 2009 11:27 AM
Foreign Direct Investment vengabeats Managerial Economics 1 October 10th, 2008 07:23 PM
foreign direct investment yasheshg Managerial Economics 0 July 17th, 2007 03:29 PM
 
Re: OBJECTIVES OF FOREIGN DIRECT INVESTMENT'S AND PI
Old
 (2 (permalink))
Rajesh Nimbunkar
Gyaan Raja is an unknown quantity at this point
 
Gyaan Raja
Student of MBA at M J S MANDALS INSTITUTE OF MGMT SCHOOLS
Pune, Maharashtra
Management Paradise Newbie
 
Status: Offline
Posts: 222
Join Date: Jul 2009
Location: Pune, Maharashtra
Re: OBJECTIVES OF FOREIGN DIRECT INVESTMENT'S AND PI - September 3rd, 2014

Great post my Friend, please post these kind off topics it really help us
Friends: (0)
Reply With Quote
Reply

Bookmarks

Tags
direct, foreign, investmentand#039s, objectives

Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is On
Trackbacks are On
Pingbacks are On
Refbacks are On


Login
Forgot Password?  New User?
  

» Recent Threads

Early Round 1 decisions...
Last post by Maya Raichura
1 Hour Ago 10:00 AM
0 Replies
University Closed for...
Last post by Maya Raichura
13 Hours Ago 10:00 PM
0 Replies
Application Tips for...
Last post by Maya Raichura
13 Hours Ago 10:00 PM
0 Replies
Effective Ways to...
Last post by Maya Raichura
13 Hours Ago 10:00 PM
0 Replies
Marketing strategy...
Last post by Alicia Suji
14 Hours Ago 09:03 PM
0 Replies
What makes a good...
Last post by Alicia Suji
14 Hours Ago 08:47 PM
0 Replies
Motivational Video -...
Last post by Bhautik Kawa
16 Hours Ago 06:53 PM
0 Replies
Turkey keeps media...
Last post by Maya Raichura
16 Hours Ago 06:40 PM
0 Replies
Marketing Strategy of...
Last post by Alicia Suji
17 Hours Ago 05:35 PM
0 Replies
Marketing Strategy of...
Last post by Alicia Suji
17 Hours Ago 05:31 PM
0 Replies
Marketing Strategy of...
Last post by Shrusti Mathur
17 Hours Ago 05:27 PM
0 Replies
Marketing Strategy of...
Last post by Shrusti Mathur
18 Hours Ago 05:25 PM
0 Replies
Marketing Strategy of...
Last post by Shrusti Mathur
18 Hours Ago 05:24 PM
0 Replies
Marketing Strategy of...
Last post by Shrusti Mathur
18 Hours Ago 05:23 PM
0 Replies
Marketing Strategy of...
Last post by Shrusti Mathur
18 Hours Ago 05:21 PM
0 Replies

» Ads





» Projects Helpline

No Threads to Display.
ManagementParadise.com is not responsible for the views and opinion of the posters. The posters and only posters shall be liable for any copyright infringement.


Management Paradise
About Us
Press
Jobs
Contact Us
Kartik Raichura
Legal
Terms & Conditions
Privacy Policy
Disclaimer
Copyrights
Help
Zeitgeist
Support
FAQs
Tour
Feedback
Partners
Follow
Copyright © 2004 - 2013 Management Paradise. Site Developed by Available.co.in