Trade policy Efficiency-seeking FDI are often favoured in product categories, such as motor vehicles, electrical appliances, business services, etc.
The major economic determinants for resource seeking FDI include: i. Market growth iii.
Wage rate: Wage rate is highly significant for the manufacture of labour-intensive products. In the next section we are discussing the data sources and methodology of the study.
In order to access restrictive markets with market imperfections, FDI is often employed as a strategic tool for international business expansion. In this context present paper examines the contribution of foreign institutional investment in sensitivity index Sensex.
The returns of FDI are generally in form of profit, i. Shahid Money and Finance. This ensures the MNE of stability of raw material supply at right prices.To have physical presence due to strategic reasons. Essay 9. By increasing the handiness of riskier long term capital for undertakings. This creates problems for the small retail investor, whose fortunes get driven by the actions of the large FIIs. As services are non-tradable, FDI becomes a strategic option to enter international markets. This has become one of the main channels of FII in India for foreigners. June A survey conducted by the World Bank reports that stock market liquidness improved in those emerging economic systems that received higher foreign investings. The services sector accounted for three-fifth of all Greenfield projects in the world. FII investing is often referred to as hot money for the ground that it can go forth the state at the same velocity at which it comes in.
Indian Accounting Review. Patterns