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Q.

What is FDI and what are its function?

About: FDI in retail

Tags: fdi, science, mobiles
Asked by vidyadhar puranik, 29 Nov '11 12:02 pm
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Answers (2)

1.

An investment made by a company or entity based in one country, into a company or entity based in another country. Foreign direct investments differ substantially from indirect investments such as portfolio flows, wherein overseas institutions invest in equities listed on a nation's stock exchange. Entities making direct investments typically have a significant degree of influence and control over the company into which the investment is made. Open economies with skilled workforces and good growth prospects tend to attract larger amounts of foreign direct investment than closed, highly regulated economies.The major functions of foreign direct investment are 1. require a business relationship between a parent company and its foreign subsidiary.2. Foreign direct business relationships give rise to multinational corporations.3. For an investment to be regarded as an FDI, the parent firm needs to have at least 10% of the ordinary shares of its foreign affiliates. 4.The investing firm may a ...more
Answered by sureshrajagopal, 03 Jun '13 03:19 pm

 
  
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2.

Foreign Direct Investment. Its function has even stalled the Parliament. We'll agree or or disagree its function in the days to come.
Answered by Sridhar, 29 Nov '11 12:09 pm

 
  
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