FOREIGN DIRECT INVESTMENT

INTRODUCTION- • Foreign Direct Investment• Generally known as the most stable component of

capital flows.• FDI offers an exclusive opportunity

the international or global businessnew markets and marketing channels elusive access to new technology and expertise

expansion of company with new or more products/servicescheaper production facilities.

• Types of FDI

Horizontal FDI

Platform FDI

Vertical FDI • Methods

• Advantages

FDI IN RETAIL

• Retail

• Division of Retail Industry

Organized Retailing

Unorganized Retailing

INTERNATIONAL GAINTS

FDI in INDIA• 10.1. 2012, Government permitted FDI, in single

brand retailing, subject to specified conditions.

• Advantages of FDI in retail sector in India:Growth in economyJob opportunitiesBenefits to farmersBenefits to consumers

• Disadvantages of FDI in retail sector in India:Excess drain of national revenueLack of competency of small businessDeterioration of small business labour

FDI Success story China

•Started off with an FDI investment of

$19 billion in 1990.

•Reached $300 billion in 1999.

•Foreign Retailers have entered in to the

Chinese retail sector and has uplifted the

country’s economy.

Conclusion Host country receives foreign funds

for development, transfer of new profitable technology, wealth of expertise and experience, and increased job opportunities. But there are also disadvantages like all the small shops, stores and vegetable vendor who sits on almost every street corner will suffer when his customers move over to the big stores.

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