Basics of Foreign Direct Investment (FDI)

Basics of Foreign Direct Investment (FDI)

Foreign direct investment (FDI) occurs when a firm invests directly in facilities to produce or market a product in a foreign country. FDI occurs whenever an organization or affiliated group takes an interest of 10 percent or more in a foreign business entity. Once a firm undertakes FDI, it becomes a multinational enterprise. Walmart is the first multinational in the early 1990’s when it is invested in Mexico.

FDI takes on two main forms. The first is a greenfield investment, which involves the establishment of a new operation in a foreign country. The second involves acquiring or merging with an existing firm in the foreign country. Acquisitions can be a minority (where the foreign firm takes a 10 to 49 percent interest in the firm’s voting stock), majority (foreign interest of 50 to 99 percent), or full outright stake (foreign interest of 100 percent).

It is important to distinguish between the flow of FDI and the stock of FDI. The flow of FDI refers to the amount of FDI undertaken over a given time period. The stock of FDI refers to the total accumulated value of foreign owned assets at a given time. We also talk of outflows of FDI, meaning the flow of FDI out of a country, and inflows of FDI, the flow of FDI into a country. 

How To Get The Exact Position You Desire..!

How To Get The Exact Position You Desire..!

Everyone enjoys doing the kind of work for which he/she is best suited. An artist loves to work with paints, a craftsman with his hands, a writer loves to write. Those with less definite talents have their preferences for certain fields of business and industry.

1^st:

Decide exactly what kind of job you want. If the job doesn’t already exist, perhaps you can create it.

2^nd:

Choose the company, or individual for whom you wish to work.

3^rd:

Study your prospective employer, as to policies, personnel, and chances of advancement.

4^th:

By analysis of yourself, your talents and capabilities, figure “what you can offer” and plan ways and means of giving advantages, services, developments, ideas that you believe you can successfully deliver.

5^th:

Forget about “a job.” Forget whether or not there is an opening. Forget the usual routine of “have you got a job for me?” Concentrate on what you can give.

6^th:

Once you have your plan in mind, put it on paper in neat form or arrange with an experienced writer to put it on paper and in full detail.

7^th:

Present it to the proper person with authority and he/she will do the rest. Every company is looking for a person who can give something of value, whether it be ideas, services, or connections. Every company has room for the person who has a definite plan of action which is to the advantage of that company.

         This line of procedure may take a few days or weeks of extra time, but the difference in income, in advancement and in gaining recognition will save years of hard work at small pay.

The size of your success is measured by the strength of your “desire.”