...(z3308661), Jay Jung (z3331738) Abstract This paper proposes several determinants of FDI in insurances services in the US and then examines its relationship and significance to FDI inflows in insurance services by an Ordinary Least Squares (OLS) regression. The regression found that a higher US wage rate discourages FDI in insurance services. However, it also shows that FDI in manufacturing and insurance services complement each other. Thus, the foreign acquisition of US manufacturing assets may have contributed to the almost fourfold increase of FDI inflows in insurance services between 1987 and 1998. 1) Introduction Since the 1980s, many foreign firms have seen the US as a relatively attractive destination for direct investment. Foreign direct investment (FDI)1 allows investors to exert a significant influence on the host country. It creates a global marketplace in which firms from one country are operating another firm in a totally different environment. The US has undergone a major process of restructuring and deregulation that has encouraged this type of investment. In 1998, US FDI inflows accounted for 30% of worldwide FDI inflows (US $193 billion) with the second largest host country (the UK) a distant US$130 billion behind. The dot com bubble in the 90s spurred the nearly doubling of FDI levels in the US in 1998 as overseas firms were eager to tap into the expanding market. Most FDI growth was contributed by the large inflows of Mergers and Acquisitions (M&As)....
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...Foreign direct investment And Economic Growth in Bangladesh Internship program at Brac Bank Ltd. Internship Report On “Foreign direct investment And Economic Growth in Bangladesh and Internship program at Brac Bank Ltd.” The Internship report is submitted to the Department of Finance, University of Dhaka for the partial fulfillment of the requirement of BBA program. Submitted to: Department of Finance University of Dhaka Supervised by: Mohammad Jahangir Alam Chowdhury Professor Department of Finance University of Dhaka Submitted by: Zarin Tasnim ID: 17-009 Section: A Department of Finance University of Dhaka Signature of the Supervisor Date of Submission: 7th May, 2015 Letter of Transmittal 7th May, 2015 Mohammad Jahangir Alam Chowdhury Professor Department of Finance University of Dhaka Subject: Submission of Internship Report on Foreign direct investment and Economic Growth in Bangladesh. Dear Sir, It is an absolute pleasure for me to submit the Internship Report titled “Foreign direct investment and Economic Growth in Bangladesh” as a significant part of the BBA program. While making this report, I have experienced a fair knowledge about Foreign direct investment and economy of Bangladesh and its impact on the growth of Bangladesh. I have tried my best to follow your guidelines in every aspect of preparing this report. I have collected what I believed...
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...the entry process of foreign banks. Bank level data from Bankscope database is also used to analyze the financial advantages of foreign banks. The empirical analysis showed that the eclectic paradigm with modifications to ownership and location-specific advantages is applicable to explain the entry of foreign banks into transition markets. The analysis also indicated that the entry of foreign banks is more intensive during banking crises in the CEE countries. 1. Introduction The internationalization process of firms has been intensively studied since the 1960s. Due to the increase in international capital flows, foreign direct investments and international trade at that time, active development of international banking also began. In the transition countries, international banks have operated only since the beginning of the 1990s, after a significant liberalization of the financial market and elimination of entry barriers. At present foreign banks1 already have more than 60 per cent of the market in the CEE countries. Growing foreign ownership in the banking sector raises several interesting questions about the entry process of foreign banks into transition economies. There are no generally accepted theories to explain the internationalization process of banks in the transition economies and its implications. The main reason for this gap in the...
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... Sector Specific Foreign Direct Investment in India 1. Hotel & Tourism: FDI in Hotel & Tourism sector in India: 100% FDI is permissible in the sector on the automatic route. 2. Private Sector Banking: * Non-Banking Financial Companies (NBFC): 49% FDI is allowed from all sources on the automatic route subject to guidelines issued from RBI from time to time. a. FDI/NRI/OCB investments allowed in the following 19 NBFC activities shall be as per levels indicated below: i. Merchant banking ii. Underwriting iii. Portfolio Management Services iv. Investment Advisory Services v. Financial Consultancy vi. Stock Broking vii. Asset Management viii. Venture Capital ix. Custodial Services x. Factoring xi. Credit Reference Agencies xii. Credit rating Agencies xiii. Leasing & Finance xiv. Housing Finance xv. Foreign Exchange Brokering xvi. Credit card business xvii. Money changing Business xviii. Micro Credit xix. Rural Credit 3. Insurance Sector: FDI in Insurance sector in India: FDI up to 26% in the Insurance sector is allowed on the automatic route subject to obtaining license from Insurance Regulatory & Development Authority (IRDA) 4. Telecommunication: FDI in Telecommunication sector: i. In basic, cellular, value added services and global mobile personal communications by...
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...Activity 4 1.3 HSBC in China 5 2. Chinese Business Environment 5 2.1 PEST Analysis 6 Political- Communism and World Trade Organisation Membership 6 Economical - High levels of FDI and a strong economy 8 Social- Education and Ageing Population 10 Technological- Accessibility 11 2.2 Analysis of the Chinese banking industry 11 2.3- Porter’s Five Force analysis 12 2.4 Culture Analysis 15 3. Mode of Entry 18 3.1 Reasons for mode of entry. 18 3.2 International Theory 18 4 - Conclusion 20 References 20 Aims This report will look at banking giant HSBCs entry into mainland China. The aim is to 1. Provide a brief outline of HSBCs entry into china, including background information on HSBC and China and take a look at the nature and location of HSBCs foreign activity. 2 Identify and analyse the main characteristics of the business environment in China that are likely to have influenced HSBCs decision to operate there. 3 Evaluate the factors that HSBC took into account when choosing its mode of international entry into China. 1. Introduction Globalisation has interconnected the world and is seen by some as an evolutionary process, although it does have its critics. Expansion into foreign markets is as a must for big businesses if they want to stay at the top of their industry. Banking is one of the largest industries in the world with HSBC one of the largest in said industry, China is one of the biggest economies that receives huge sums of foreign direct investment...
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...Term paper on “FDI in BRICS Countries” Submitted By AMARNADH ILLURI (1223114141) B.V.S.P.CHARAN TEJ (1226114108) SANDESH.SAKA (1226114132) SAIRAJ THAMMINA (1223114139) Submitted To Dr Radha Raghuramapatruni.,PhD Associate Professor in International Business & Economics GITAM School of International Business GITAM University Visakhapatnam -45 Andhra Pradesh FDI in BRICS Countries ABSTRACT: The BRICS continued to be strong performers in attracting foreign direct investment in 2013, almost doubling their share from the pre-crisis level. BRICS now account for over one fifth of global FDI with China gaining the 2nd spot, Russia 3rd and Brazil 7th in the list of top 20 host economies of 2013.The current share of global FDI inflows to BRICS is at 22 per cent which is twice that of their pre-crisis level, according to the UN Conference on Trade and Development (UNCTAD) report. Total inflow to BRICS reached $322 billion in 2013, up 21 per cent from 2012. INTRODUCTION: South Africa outperformed other countries within BRICS, with FDI inflows rising by 126%. With inflows to China at an estimated US$127 billion, including both financial and non-financial sectors – the country again ranked second in the world, closing the gap with the United States to some $32 billion, FDI inflows to the Russian Federation jumped by 83% to US$94 billion making it the world’s third largest recipient of FDI for the first time ever, The rise was predominantly ascribed to the large acquisition by BP (United...
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...Economic structure and growth When the Europeans set up trading posts around the area of Bangladesh, the British dominated the region. As such, Bangladesh was part of British India until the region was split up into India and Pakistan in 1947. Pakistan was comprised of West Pakistan (current Pakistan) and East Bengal (current Bangladesh. This awkward arrangement of a two-part country with its territorial units 1,600 km apart left the Bengalis marginalized and dissatisfied. In 1971, East Bengal separated from Pakistan and was renamed Bangladesh. Ever since, economic development has been very slow, hampered by political turmoil. It is one of the poorest countries in the world with nominal GDP per head of only USD 1,483 and 36% of the population living below the poverty line of USD 1 per day. The low level of human development is also reflected in the UN’s human development index, which ranks Bangladesh 146th out of 182 countries. Economic development is also hampered by a high vulnerability to inundations. Each year, about a third of the country is flooded during the annual monsoon rains. This severely affects the agricultural sector, washing away crops. While the agricultural sector is not especially important in terms of economic size, since it accounts only for 18% of GDP, it employs 45% of the country’s labor force. The industrial sector contributes 29% to GDP and within this sector the textiles and garment sector is a key growth driver. Unfortunately, the industrial sector...
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...into three categories, namely (a) Services-travel, transportation, insurance, Government not included elsewhere (GNIE) and miscellaneous (such as, communication, construction, financial, software, news agency, royalties, management and business services); (b) Income; and (c) Transfers (grants, gifts, remittances, ets.) which do not have any quid pro quo. 4.3. Under the Capital Account, capital inflows can be classified by instrument (debt or equity) and maturity (short or longterm). The main components of the capital account include foreign investment, loans and banking capital. Foreign investment, comprising Foreign Direct Investment (FDI) and Portfolio Investment consisting of Foreign Institutional Investors (FIIs) investment, American Depository Receipts/Global Depository Receipts (ADRs/GDRs) represents non-debt liabilities, while loans (external assistance, external commercial borrowings and trade credit) and banking capital, including non-resident Indian (NRI) deposits are debt liabilities. 4.4. The data on merchandise trade are available from two sources namely; (a) from the Directorate General of Commercial Intelligence and Statistics (DGCI&S) on customs basis; and (b) from RBI...
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... AURANGABAD. 2011-2012 PROJECT REPORT on “FDI in indian retail sector” Submitted By Mr. Sagar P. Mahalkar Mr.Sachin Shinde Mr. Shrikant Gaikwad Mr.Akshay Shisode Guided By Prof. Ramesh Sardar DEPARTMENT OF MANAGEMENT SCIENCE, UNIVERSITY CAMPUS, AURANGABAD. 2011-2012 “CERTIFICATE” This is to certify that the project report entitled ”FDI IN INDIAN RETAIL SECTOR” is the confide work of the candidate satisfactorily completed during the academic year 2011-2012 as the partial fulfillment of requirement for the M.B.A.(F.Y.) in the Department of Management Science. Submitted by Mr. Sagar P. Mahalkar Mr. Shrikant Gaikwad Guided by DIRECTOR Prof. Ramesh Sardar Prof. Abhijeet Shelke Acknowledgement We would specially like to thank to the people who directed, encouraged, and advised us for the whole project. This is a real project we are getting something new information about various problems of FDI in retail sector in India. This project clarifying our views about FDI what we thought and problems of FDI in retail sector in India what actually is. We are very thankful to my guider that, he given us his valuable time and advised us time to time for this project. I am also very thankful to all the people...
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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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...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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...Vietnam Protectionism question Vietnam has an estimated 90.3 million inhabitants. It is the world's 13th-most-populous country, and the eighth-most-populous Asian country as of 2012. It is a one party communist state that has been one of south east asias fastest growing economies and has its sights on becoming a developed nation by 2020. It became a unified country in 1975 when the armed forces of the communist north seized the south. The country experienced 3 decades of bitter wars in which the communists first fought against the colonial power France, then against South Vietnam and its US backers. A visit to Vietnam by US president Bill Clinton in 2000 was the culmination of American efforts to normalize relations with the former enemy. In 1986 the Doi Moi resulted in Vietnams sucessful transition to a socialist orientated market economy. Elements of market forces and private enterprises were introduced soon after and a stock exchange opened in 2000. In 2007 Its successful economic reforms resulted in it joining the World Trade Organization which has promoted more competitive, export-driven industries, It also became an official negotiating partner in the Trans-Pacific Partnership trade agreement in 2010. These lifts in protectionism has meant that poverty has declined significantly however, Vietnam is still working to create jobs to meet the challenge of a labor force that is growing by more than one million people every year. It also still suffers from relatively high...
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...and most investment-friendly countries and is ranked one as the freest nation in its region. The country is known for its orderly and prosperous culture, with a modern market economy, and is a member of the European Free Trade Association. Switzerland has a developed infrastructure for scientific research, companies spend generously on R&D, intellectual property protection is generally strong and the country’s public institutions are transparent and stable. Switzerland's major industries include tourism, the provision of banking, insurance and financial services, watch-making, precision instrument manufacturing and chemical manufacturing. The service sector contributes more than 70% of Switzerland's economy, and much of that is financial services. Over 200 thousand Swiss jobs are in banking, which represents~ 5% of the whole Swiss workforce, and they are not the worst paid ones. Switzerland is said to be the world's biggest center of private banking, with more than a third of all private wealth based there. Economic Indictors Switzerland hosts approximately eight million citizens with a GDP country rank of 37 out of 192 countries as of 2013. GDP Per Capita PPP steadily increased over the past five years from $47,317 in 2009 to $53,750, an average increase per year of 3%. The country’s economy experienced significant growth with a GDP Grow Rate of -1.94% in 2009 increased to 2.95% in 2010 and slightly decreasing to 2% in 2013. Switzerland also has experienced a low level...
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...ventilation is still needed for certain food items such as vegetables and fruits, air-tight containers still have vast uses in the food industry and we foresee a sharp rise in the demand for this new range of products," he told Business Times recently. Lee Soon Seng is wholly owned by SCGM Bhd, a public-listed investment holding firm. For the financial year ended April 30 2013, SCGM posted RM96.9 millions revenue compared with RM82.1 million in 2012. Net profit saw a jump from RM5.9 million to RM7.8 million in the corresponding period. <http://www.btimes.com.my/Current_News/BTIMES/articles/PLASTICS/Article/#> FDI has attracted increasing interest from developing countries because of the perceived benefits in terms of the injection of capital, technology and knowledge. This article analyses the main analytical underpinnings concerning the inter-relationships between FDI and host country...
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...foreign direct investment (FDI) inflows have provided strong impetus for economic development across countries. FDI serves as an important source of supply funds for domestic investment thus, promoting capital formation in the host country (Omisakin et al.2009). DI inflows can assist an economy by giving opportunities orameliorating the level of service sector (i.e telecommunications, banking and finance, transport), wholesale and retail trade, business and legal services. During this period there have been different strands in the empirical and theoretical literature aimed at investigating the relationship between FDI inflows and their determinants in developed and developing markets. According to UNCTAD (2009), many developing countries, including the leastdeveloped ones, have attracted only small amounts of FDI inflows despite their efforts towards economic liberalization in an increasingly globalizing world. Moreover, FDI inflows are highly concentrated in a small number of countries. The demand-side of FDI theory argues that investment will go primarily to countries large enough to support the scale economies needed for production (Trevino and Mixon2004). For Grosse and Trevino (1996) this explanation helps to understand why most FDI is directed to developed rather than to developing countries, given that most investment historically has been marketseeking. Developing markets have to compete in order to attract the relatively smaller percentage of FDI inflows compared to large...
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