...Culture represents the beliefs, ideologies, policies, practices of an organization. It gives the employees a sense of direction and also controls the way they behave with each other. The work culture brings all the employees on a common platform and unites them at the workplace. There are several factors which affect the organization culture: * The first and the foremost factor affecting culture is the individual working with the organization. The employees in their own way contribute to the culture of the workplace. The attitudes, mentalities, interests, perception and even the thought process of the employees affect the organization culture. Example - Organizations which hire individuals from army or defence background tend to follow a strict culture where all the employees abide by the set guidelines and policies. The employees are hardly late to work. It is the mindset of the employees which forms the culture of the place. Organizations with majority of youngsters encourage healthy competition at the workplace and employees are always on the toes to perform better than the fellow workers. * The sex of the employee also affects the organization culture. Organizations where male employees dominate the female counterparts follow a culture where late sitting is a normal feature. The male employees are more aggressive than the females who instead would be caring and softhearted. * The nature of the business also affects the culture of the organization. Stock broking...
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...FDI – A Foreign direct investment (FDI) is a controlling ownership in a business enterprise in one country by an entity based in another country. Foreign direct investment includes "mergers and acquisitions, building new facilities, reinvesting profits earned from overseas operations. Investments can take place for many reasons, including to take advantage of cheaper wages, special investment privileges (e.g. tax exemptions) offered by the country. India is the third most attractive foreign directinvestment destination in the world. Types— Horizontal FDI arises when a firm duplicates its home country-based activities at the same value chain stage in a host country through FDI.[4] Platform FDI Foreign direct investment from a source country into a destination country for the purpose of exporting to a third country. Vertical FDI takes place when a firm through FDI moves upstream or downstream in different value chains i.e., when firms perform value-adding activities stage by stage in a vertical fashion in a host country.[4 Mauritius, Singapore, US and UK were among the leading sources of FDI. Why countries seek FDI? Domestic capital is inadequate for purpose of economic growth; Foreign capital is usually essential, at least as a temporary measure, during the period when the capital market is in the process of development; Foreign capital usually brings it with other scarce productive factors like technical know how, business expertise and knowledge. A coin...
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...INVESTMENT IN INDIA ITS IMPACT ONBANKING AND INSURANCE SECTOR Introduction to topic Foreign direct investment is investment made by a foreign individual or company in productivecapacity of another country. It is the movement of capital across national frontiers in a manner that grants the investor control over the acquired asset. A parent business enterprise and itsforeign affiliate are the two sides of the FDI relationship. Together they comprise an MNC. The parent enterprise through its foreign direct investment effort seeks to exercise substantial controlover the foreign affiliate company.Foreign direct investments (FDI) are investment of foreign assets into domestic structures,equipments and organization. FDI reflects the objectives of obtaining a lasting interest by aresident entity in one economy (Direct Investor) in entity resident in an economy other than thatof the Investor (Direct investments enterprise). The lasting interest implies the existing of a long-term relation between the direct investor and the enterprise and a significant degree influence onthe management of the enterprise. Direct investment involves both the initial transaction betweenthe two entities and all the subsequent capital transactions between them and among affiliatedenterprises, both incorporated and unincorporated. Problem Statement In today¶s economy FDI plays an important role in a each sector. So it is important to understandthe concept and trends of FDI, therefore in this study an attempt...
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...Contents Introduction 3 Literature review 4 Research methodology 9 Analysis 11 Case study: Tata’s Croma 16 Findings 20 FDI in Retail in India 21 Growth drivers in India for retail sector 22 Discussion 23 FDI in INDIA SECTOR WISE 23 Conclusion 25 Bibliography 27 Introduction Foreign Direct Investment (FDI) is fund flow (inflow/outflow) between the countries wherein one gains benefit from their investment whereas another can exploit the opportunity to enhance the productivity and find out better position through performance. Foreign Direct Investment (FDI) is the flow of funds between countries wherein one country reaps benefits from the investments and the other can make the most of the opportunity to improve the productivity and stabilize their position through performance. The Dictionary of Economics has defined FDI as investment in an overseas country through the acquisition of a company there of an operation on a new site. In other words, the capital inflows from abroad that is invested in to improve the production capability of the economy. Two forms of FDI: * Inward FDI * Outward FDI FDI is an important factor for growth and development in both developed and developing countries. FDI has seen a spectacular growth in the last two decades globally. Policies are formulated in order to accelerate inward flows. FDI provides good opportunities and benefits for both the host and home countries in terms of investments. The “home” countries benefit...
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...FDI IN INSURANCE & PENSION ECONOMIC ANALYSIS OF INDIAN SCENARIO PROJECT SYNOPSIS Leading Newspaper The Times of India reported on October 4th, 2012, “Big Bang reforms: Cabinet approves 49% FDI in insurance, 26% in pension sector”. This has indeed been a big bang reform announcement post FDI in multi brand retail by the Gov. of India. In light of this our group has tried to weigh the topic in Economic terms. The synopsis of our project on this topic has been discussed henceforth in the document. INTRODUCTION The Gov. of India has allowed 49% FDI in Insurance and 26% in Pension sector. This move permits foreign shareholding in insurance companies to the extent of 49% and to 26% in pension companies with an aim to provide better insurance coverage and to augment the flow of long term resources for financing infrastructure. The Insurance sector was opened up for private sector in 2000 after the enactment of the Insurance Regulatory and Development Authority Act, 1999 (IRDA Act, 1999). The industry has been demanding for long to increase the FDI limit for adequate funds for expansion of the sector. IRDA Chairman J Hari Narayan recently favored up to 49 per cent foreign investment in the sector. SIGNIFICANCE When a firm controls (or have a strong say in) another firm located abroad, e.g. by owing more than 10% of its equity, the former is said "parent enterprise" (or "investor") and the latter "foreign affiliate". Foreign Direct Investment (FDI) is the financial investment...
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...Economic Environment of Business Report On “COST EFFECTIVENESS AND INDIAN INDUSTRY” Course Instructor: Dr. S.P. Das Economic Environment of Business Report On “COST EFFECTIVENESS AND INDIAN INDUSTRY” Course Instructor: Dr. S.P. Das Submitted By: | Astha MathurSection C | Roll No.: | UM15135 | Submitted By: | Astha MathurSection C | Roll No.: | UM15135 | CONTENT Sr. No | Title | Page No. | 1 | Abstract | 4 | 2 | Introduction | 4 | 3 | Overview of Indian Industry | 4 | 4 | Implementing Cost Effectiveness | 6 | 5 | Implications of Cost Effectiveness | 7 | 6 | Break-Down of Indian Industrial Sector | 8 | 7 | Government initiatives to support for Cost Effectiveness in Indian Industry | 11 | 8 | Conclusion | 16 | ACKNOWLEDGEMENT We would like to express a whole-hearted gratitude to all those who have helped with the report or have been associated with the report in any which way and made it a worthwhile experience. We are greatly indebted to our batch mates and our seniors for having shared their invaluable experience that went a long way in the successful completion of our report. We are also grateful to Dr. S.P Das who has given us the opportunity for working on such a project and incessant support & guidance leading it to successful completion. Thank you. We would like to express a whole-hearted gratitude to all those who have helped...
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...and its impact on Indian Economy: Developments and Challenges Globalization (or globalization) describes a process by which regional economies, societies, and cultures have become integrated through a global network of communication, transportation, and trade. The term is sometimes used to refer specifically to economic globalization: the integration of national economies into the international economy through trade, foreign direct investment, capital flows, migration, and the spread of technology. Globalization as a spatial integration in the sphere of social relations when he said “Globalization can be defined as the intensification of worldwide social relations which link distant locations in such a way that local happenings are shaped by events occurring many miles away and vice – versa.” Globalization generally means integrating economy of our nation with the world economy. The economic changes initiated have had a dramatic effect on the overall growth of the economy. It also heralded the integration of the Indian economy into the global economy. The Indian economy was in major crisis in 1991 when foreign currency reserves went down to $1 billion. Globalization had its impact on various sectors including Agricultural, Industrial, Financial, Health sector and many others. It was only after the LPG policy i.e. Liberalization, Privatization and Globalization launched by the then Finance Minister Man Mohan Singh that India saw its development in various sectors. Advent of New...
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...ECONOMICS AND MANAGEMENT IN DEVELOPING COUNTRIES FDI IN INDIA PAST, PRESENT AND FUTURE | | | |PROFESSOR Pushan DUTT |TEAM MEMBERS | | | | | |Ajay BANSAL | |INSEAD |Gurjeet SINGH | |SINGAPORE CAMPUS | | | | | Introduction to FDI Foreign Direct Investment (FDI) broadly encompasses any long-term investments by an entity that is not a resident of the host country. Typically, the investment is over a long duration of time and the idea is to make an initial investment and then subsequently keep investing to leverage the host country’s advantages which could be in the form of access to better (and cheaper)...
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...Effect of FDI on Bilateral Trade Abstract Contemporary literature refers to trade and Foreign Direct Investment (FDI) as alternative strategies. The debate is mainly between two notions: (1) that FDI displaces trade, and (2) that FDI and trade complement each other. Literature on FDI talks about the effect of foreign investments on trade. Lipsey (2002) mentions that outward FDI may decrease or increase (or have no effect on) exports of home country. These effects depend largely on the competitiveness of the host country and the motives behind investment by the home country in the host country. This paper is aimed at studying the effect of FDI on bilateral trade as well as effect at the aggregate level especially in the developed-developing nation paradigm. Introduction Literature suggests that there are a number of motives on which FDI takes place across nations. Most of the firms in the developed countries will go for foreign investment once they fulfill their domestic market and they in order to grow will go to foreign market. In this case the main motive of a firm is to tap new markets. This entry of one firm in to a foreign market will create a bandwagon effect thorough which their competitors will also enter that market. Again, when the competition sets in the foreign market, companies will be forced to take cost reduction measures to achieve higher profits will look for other destinations which have lower cost of production and thus the motive will become efficiency...
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...Literature Review The purpose of this study is to get an in depth understanding of the insurance industry to understand what could be the impact of FDI on Indian insurance industry. To strengthen this study and get in-depth understanding of the variables that could impacted due to FDI a review of the past research has been done in this section. An empirical study by (Li, Donghui; Moshirian, Fariborz; Sim, Ah-Boon, 2003) done on the U.S. insurance sector concludes that FDI contributes significantly to the volume of trade. This prompted studies to identify what are the important and significant variables that attract FDI in insurance. There have been many papers published that study the factors that lead to participation of in international insurers in a country’s insurance sector. A study by (Li & Moshirian, 2004) of the US insurance services for the period 1984-1998 tries to identify factors that increases the desirability for FDI in insurance. The major factors that this study identifies are national income, relative cost of capital, relative wage rate, total trade in insurance services, exchange rate volatility, FDI in banking, source country’s insurance market size and the financial development of the host country. Other studies that intend to find determinants that attract foreign participation in insurance market include study by (Ma & Pope, 2003) .The study reveals that major foreign market characteristics that determine international insurers participation...
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...iosrjournals.org Contribution of Insurance Sector to Growth and Development of the Indian Economy 1 1 2 Dr. M.Subba Rao, 2R. Srinivasulu M.Com, M.Phil, Ph.D Principal Sri Balaji P.G College (MBA) Anantapur – 515002 Andhra Pradesh - India M.Com, M.B.A Research Scholar Department of Commerce S.K University – Anantapur Andhra Pradesh India Abstract: For economic development, investment are necessary, investments are made out of savings. Insurance Company is a major instrument for the mobilization of savings of people particularly from the middle and lower income groups. These savings are channelized into investment for economic growth. Insurance serves a number of valuable economic functions that are largely distinct from other types of financial intermediaries. According to the official estimates, Indian economy is expected to grow at 7.6% (+/- 0.25%) in the fiscal year 2012–2013. However, leading financial organizations and economic think-tanks expect Indian economy to grow slower than official projections. The economy of India is the tenth-largest in the world by nominal GDP and the third largest by purchasing power parity (PPP). The country is one of the G-20 major economies and a member of BRICS. On a per capita income basis, India ranked 140th by nominal GDP and 129th by GDP (PPP) in 2011, according to the IMF. Fortunately, in the past few years, several interesting lines of research have begun to map the specific contributions of insurance to the economic growth process...
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...Foreign Direct Investment (FDI) as a strategic component of investment is needed by India for its sustained economic growth and development through creation of jobs, expansion of existing manufacturing industries, short and long term project in the field of healthcare, education, research and development (R & D) etc. After independence in India, FDI gained attention of the policy makers for acquiring advanced technology and to mobilize foreign exchange resources. In order to boost the FDI inflows in the country Indian government allowing frequent equity participation to foreign enterprises apart from provides many incentives such as tax concessions, simplification of licensing procedures and de-reserving some industries like drugs, fertilizers, aluminum etc. The first Prime Minister of India pointed out the importance of FDI not just as a source of capital, but for the host of technological and industrial knowledge it would bring with it. India laid out and started following a strategy of import substituting industrialization in the framework of development planning with a focus on encouraging and improving local capability, mostly in heavy industry and machine manufacturing sectors. To compensate for the general limited availability of technology, skills, entrepreneurship, bringing in FDI was one of the top priorities. The 1970s brought in more restrictions. FDI was only allowed in a selected group of core or high priority industries. The Foreign Exchange Regulation...
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...TABLE OF CONTENTS LIST OF ABBREVIATIONS 3 INTRODUCTION 5 OUTWARD FDI 6 INWARD FDI 7 IMPORTANCE OF FDI 8 OVERVIEW OF MAURITIAN ECONOMIC PERFORMANCE 9 BOARD OF INVESTMENT 10 INCENTIVES ADOPTED BY THE GOVERNMENT OF MAURITIUS TO PROMOTE FDI 10 INVESTMENT POLICIES 10 1. LEGISLATION 11 Law Practitioners Act 12 Companies Act 12 Public Procurement Act 13 Competition Act 13 Trade and Investment Framework Agreement 13 Employments Rights Act and Employment Relations Act 14 Financial Services Act 14 Securities Act 14 Insolvency Act 14 Other investment incentives 15 TRIPS Agreement 15 2. Fiscal policy 16 3. LIBERALISATIONAND DIVERSIFICATION 17 4. MACROECONOMIC STABILITY 19 Social and political stability 19 Exchange Control 20 Inflation control 20 5. FINANCIAL SERVICES 20 6. INVESTMENT FACILITATION 26 7. LABOUR MARKET REFORM 27 8. INFRASTRUCTURE 27 Transport 28 Telecommunication network 28 Building Premises 29 TOP SECTORS ATTRACTING FDI IN MAURITIUS 30 FINANCIAL HUB 31 REAL ESTATE ACTIVITY 31 INFORMATION TECHNOLOGY AND OUTSOURCING SERVICES 32 MANUFACTURING SECTOR 33 SEAFOODS HUB 34 TOURISM SECTOR 35 THE TWO RECENTLY SECTORS WHICH ARE EXPECTED TO GROW AND DEVELOP: 36 KNOWLEDGE HUB 36 MEDICAL 37 FDI EVOLUTION MAURITIUS 38 SPECIAL CONSTRAINTS AND CHALLENGES 41 SUCCESSES AND CHALLENGES 42 THE ECONOMIC FUTURE OF MAURITIUS 43 ...
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...Economic Revival June 2012 June 2012 © Confederation of Indian Industry Copyright © 2011 by Confederation of Indian Industry (CII), All rights reserved. No part of this publication may be reproduced, stored in, or introduced into a retrieval system, or transmitted in any form or by any means (electronic, mechanical, photocopying, recording or otherwise), without the prior written permission of the copyright owner. CII has made every effort to ensure the accuracy of information presented in this document. However, neither CII nor any of its office bearers or analysts or employees can be held responsible for any financial consequences arising out of the use of information provided herein. However, in case of any discrepancy, error, etc., same may please be brought to the notice of CII for appropriate corrections. Published by Confederation of Indian Industry (CII), The Mantosh Sondhi Centre; 23, Institutional Area, Lodi Road, New Delhi-110003 (INDIA), Tel: +91-11-24629994-7, Fax: +91-11-24626149; Email: info@cii.in; Web: www.cii.in Confederation of Indian Industry The Mantosh Sondhi Centre 23, Institutional Area , Lodi Road, New Delhi – 110 003 Tel.: 011-24621874, 24629994-97 : Fax: 011-24626149 Website:www.cii.in Edited, printed and published by: Chandrajit Banerjee, Director General, CII on behalf of Confederation of Indian Industry from The Mantosh Sondhi Centre, 23, Institutional Area, Lodi Road, New Delhi –110 003 Tel: 91-11-24629994-7 Fax: 91-11-24626149 email:...
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...Policy and Promotion Ministry of Commerce and Industry Government of India CONSOLIDATED FDI POLICY (EFFECTIVE FROM APRIL 5, 2013) Government of India Ministry of Commerce & Industry Department of Industrial Policy & Promotion (FC Section) CIRCULAR 1 OF 2013 SUBJECT: CONSOLIDATED FDI POLICY. The “Consolidated FDI Policy” is attached. 2. This circular will take effect from April 5, 2013. (Anjali Prasad) Joint Secretary to the Government of India D/o IPP F. No. 5(1)/2013-FC.I Dated the 05.04.2013 Copy forwarded to: 1. 2. 3. 4. 5. Press Information Officer, Press Information Bureau- for giving wide publicity to the above circular. BE Section for uploading the circular on DIPP's website. Department of Economic Affairs, Ministry of Finance, New Delhi Reserve Bank of India, Mumbai Hindi Section for Hindi Translation 1 INDEX DESCRIPTION PAGE NUMBER CHAPTER-1 INTENT AND OBJECTIVE 1.1 Intent And Objective 5 5 CHAPTER-2 DEFINITIONS 2.1 Definitions 7 7 CHAPTER-3 GENERAL CONDITIONS ON FDI 3.1 Who can invest in India? 3.2. Entities into which FDI can be made 3.3 Types of Instruments 3.4 Issue/Transfer of Shares 3.5 Specific conditions in certain cases 3.6 Entry routes for Investment 3.7 Caps on Investments 3.8 Entry conditions on investment 3.9 Other conditions on Investment besides entry conditions 3.10 Foreign Investment into/Downstream Investment by Indian Companies 13 13 15 17 20 26 29 30 30 31 31 CHAPTER-4 CALCULATION OF FOREIGN INVESTMENT ...
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