...was running 24 stores bringing in $12.7 million in sales. By 2012, the company served more than 200 million customers each week, employed 2.2 million associates worldwide, in more than 10,000 stores in 27 countries. After waiting years to open a “Superstore” in India, ambitious plans to expand in the country have seized to continue. India, the world’s largest retailer, has a difficult time with the regulations of the country as well as finding a foreign chain to help invest in the country’s $400 billion retail sector (Pasricha, 2013). Walmart has said it would end its joint venture with Bharti Enterprise Limited amid continued difficulties navigating regulations on foreign investments. To continue the organizational success Walmart has achieved, the organization will need to continue to research several key factors. These factors include: India’s restrictive rules on foreign firm operations, the target market blunder, Walmart’s past efforts to penetrate the retail industry in India, and any challenges encountered in partnership with Bharti. Walmart ceases operations in India because of failed partnership and restrictive government regulations on foreign investments. Walmart’s Ethics Walmart set its business foundation on values and ethics that leads the company. The values that direct the company and leadership are three fundamental beliefs, which are respect, exceptional service to customers, and striving for excellence. Walmart’s guiding principles are put in position...
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...type in China and India. Which of the two would you prefer to do business in and why? India and China are two republics that have experienced very opposing political regimes throughout history. China has been fundamentally stable country with a lack of a distinct authority figure (Desai, 2003). Being a single party state China has been controlled by the Chinese Communist Party since the 5th National Congress held in 1927 (Wang, 2013). Correspondingly India, have always been a federal parliamentary democratic republic where the President of India elected is head of state and the Prime Minister elected is the head of government (U.S. Central Intelligence Agency, 2013). This essay will reflect on the political views of both China and India, and attempt to determine why it is more advantageous to do business in India. Government regulation is the process of dissemination, monitoring and enforcement of policy established by appropriate legislation. In, China regulation is central as particular industries are not accessible to foreign investors as the Communist Party aims to restrict external influences on its own population (Desai, 2003). An estimated 90 percent of companies listed on the Chinese exchanges are either partly or fully state-owned (Desai). Retaining a level competition base is significantly reduced, as the chances of competing against a government owned company is more than likely. A good example of policy that has restricted and reduced foreign investment is China’s...
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...Foreign Direct Investment in India | The fast and steadily growing economy of India in majority of its sectors, has made India one of the most famous and popular destinations in the whole world, for Foreign Direct Investment. India's ever-expanding markets, liberalization of trade policies, development in technology and telecommunication, and loosening of diverse foreign investment restrictions, have further collectively made India, the apple of investors' eye, for most productive, profitable, and secure foreign investment. According to a recent survey by the United Nations Conference on Trade and Development (UNCTAD), India has conspicuously emerged out as the second most popular and preferable destination in the entire world, after China, for highly profitable foreign direct investment. In recent years, bulk of the foreign direct investment in indian business sectors of infrastructure, telecommunication, information technology, computer hardware and software, and hospitality services, have been made by investors of countries like US, UK, Mauritius, Singapore, and many others. Global Jurix, one of the leading full-fledged legal organizations of India with global repute, has been helping companies, business corporations, organizations, and other potential investors of countries all around the world, in making foreign direct investment in indian business sectors, in various ways described in the section below. | FDI - Inbound and Outbound | The Foreign Direct Investment...
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...three main areas. First the sustained huge investments in infrastructure, industry and human resource. Secondly, the increasing complexity of these economies and their integration with the rest of the world. And finally the rising middle class with higher incomes and huge demands for a wide range of products and services. The opportunities for foreign firms include supporting Asian investments and connecting with Asia and meeting the increasing consumer demand. Foreign firms can capitalize these opportunities by adding value to natural resources, developing networking industries and tourism and by developing-delivering better services. (2) Introduction: The Asian Opportunity for Kiwi Bank Kiwi bank Kiwi bank was established in 2002 and has been performing impressively over the years. Kiwibank is a wholly-owned subsidiary of New Zealand Post, which is a 100% state-owned enterprise. The low fee, low interest rate value oriented business model has helped it in increasing customer base and higher revenues. The range of services and products provided by Kiwi bank included credit cards, a nationwide ATM network, personal loans, business banking, internet banking, mobile phone banking services, insurance and wealth management. https://www.kiwibank.co.nz/about-us/investor-centre Entering the Asian market can make a kiwi firm more productive and resilient to changes. This can be achieved by building scale, developing their staff, IP and technological investments and diversifying...
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...SECTOR IN INDIA * Introduction: Indian Banking Sector * Role of Banking Sector in Developing Economy (India) * Regulatory Body: RBI * Banking Regulation Act 1949 * Present Scenario * Future Aspect * Risk Involved * SWOT Analysis : Banking Sector in India 2.1 Banking Sector (India) In India the banks are being segregated in different groups. Each group has their own benefits and limitations in operating in India. Each has their own dedicated target market. Few of them only work in rural sector while others in both rural as well as urban. Many even are only catering in cities. Some are of Indian origin and some are foreign players. All these details and many more are discussed over here. The banks and its relation with the customers, their mode of operation, the names of banks under different groups and other such useful information are talked about. One more section has been taken note of is the upcoming foreign banks in India. The RBI has shown certain interest to involve more of foreign banks than the existing one recently. This step has paved a way for few more foreign banks to start business in India. * Central Bank: The Reserve Bank of India is the central Bank that is fully owned by the Government. It is governed by a central board (headed by a Governor) appointed by the Central Government. It issues guidelines for the functioning of all banks operating within the country. * Public Sector Banks a. State Bank of India and...
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...3. Discussion ABC Limited should choose a suitable market entry strategy before they enter India. There are five models of entry, including exporting, licensing, franchising, specialized modes and foreign Direct Investment (Griffin and Pustay, 2013). Appendix table 1 shows advantages and disadvantages of different modes of entry. Foreign Direct Investment is one of the modes of entry and it is suitable entry model for ABC Limited. Because according to compare with them, Foreign Direct Investment maintains more control and high profit potential in Business than others (details in table 1). Foreign Direct Investment refers to an investment made by business enterprise in one country into a company in another country (Oxford Reference, 2009). It...
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...India, considered one of the biggest emerging markets in the world, is a country located in southern Asia with a population of over a billion people and its capital city being New Delhi (http://www.kwintessential.co.uk/resources/global-etiquette/india-country-profile.html.) The current leadership in India is implementing extensive changes to encourage international business in India, from privatization to the liberalization of trade (http://www.cyborlink.com/besite/india.html). India has more than fourteen major and three hundred minor languages, but the official language is English and Hindi. The Indo-Aryan ethnic group makes up seventy-two percent of India’s population, with 25 percent Dravidian and 3 percent Mongoloid and/or other (“Country Profile: India”). The market opportunity’s this country brings is enormous; the majority of this country is surrounded by water, thus making trade an appealing aspect. Furthermore, the country itself has a very abundant supply of raw materials with an improving rail system and India holds a very stable parliamentary government (“Country Profile: India”). In the following summary, I will provide you with greater understanding on how India’s business environment works and the benefits this country can bring to a company wanting to expand their foreign operations. The country of India has common laws with a written constitution ensuring the rights of individuals and property. Invasion of privacy by people is not spoken of in the...
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...International Referred Research Journal,August, 2011. ISSN- 0974-2832, RNI-RAJBIL 2009/29954;VoL.III *ISSUE-31 Research Paper— Management Foreign Investment in Life Insurance Companies * Kishor Kumar Meena * Management, Jaipur National University, Jaipur A B S T R A C T The Insurance sector reforms have open in the door for private play-ers, private insurance companies in the beginning of life insurance bus-iness with public sector company (LIC). Foreign Direct Investment (FDI) has allowed in private life insurance companies in India, under an act of IRDA with a limit of foreign equity of 26%.The life insurance sector is playing a pivo-tal role in both Indian and Global markets.Those factor we have taken for the analysis of private life insurance companies performance are premium growth, market share of the companies, portfolio Invest-ment, equity share capital etc. It is use for a measure of positive or negative impact of FDI investment in Indian private life insurance co-mpanies. It has investigated for a sample of five selected private life insurance companies and one pub-lic company for the purpose to co-mparison with selected companies it is using a panel data for analysis in between the period of 2002-10. Different key variable is use to an-alysis yearly premium income, infr-astructure development, employee facilities, business expansion etc. it was examined to identify cause for any significant impact on the life insurance sector. The study has made use of secondary...
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...ABOUT FOREIGN DIRECT INVESTMENT Foreign direct investment (FDI) is a direct investment into production or business in a country by a company in another country, either by buying a company in the target country or by expanding operations of an existing business in that country. Foreign direct investment is in contrast to portfolio investment which is a passive investment in the securities of another country such as stocks and bonds. Foreign direct investment has many forms. Broadly, foreign direct investment includes "mergers and acquisitions, building new facilities, reinvesting profits earned from overseas operations and intra-company loans". In a narrow sense, foreign direct investment refers just to building new facilities. The numerical FDI figures based on varied definitions are not easily comparable. There are basically three types of FDI, these are: 1. Horizontal FDI arises when a firm duplicates its home country-based activities at the same value chain stage in a host country through FDI. 2. Platform FDI 3. 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. The foreign direct investor may acquire voting power of an enterprise in an economy through any of the following methods: * by incorporating a wholly owned subsidiary or company anywhere * by acquiring shares in an associated enterprise ...
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...inflows of Foreign Direct Investment in India & China !! Vivek Bhurat (MBA) # 3-4-1013/22, Flat No. 201, Vijetha Sai Mohini Apts., Barkatpura, Hyderabad - 500027. Mobile : 9000400076, E-mail : svivekbhurat@gmail.com Abstract The purpose of this article is to highlight the important determinants of FDI inflow in India & China. This article attempts to answer the question: "What are the important factors attracting FDI inflow in China then that of India?" It is concludes that market size, population, low labor cost, quality infrastructure, open policies to international trade, economic policies, tax policies, etc. are important factors of FDI inflow. Theoretically, it will fill the gap in the literature and help to the economists and investors to understand the This study aims to helps to know the future of india in terms of development in reference to Foreign Investment. The changing trends in the government & economy of india have been the indicators of development of India. The main objective of this study is to compare the flow of FDI in INDIA & CHINA and to bring the revolution in the development of india by the schemes taken by india to attract foreign investment. The crucial step in this revolution is the campaign “Make in India” an intiative by Shri Narendra Modi, Honourable Prime Minister of India. This paper also highlights the foreign direct investment (FDI) policy under the campaign “Make in India”. Introduction India & China...
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...Business, socio- economic and cultural environments of India Introduction India has emerged as a potential and a diversified market for the Western firms and other foreign investors. Earlier establishing a business in India was a challenging assignment, but economic reforms, brought in by different Indian governments over a period of time, have smoothen the course of entry for Western multinationals and other business magnets. Still it is considered difficult and a different proposal to do business in or with India, mainly because of its different business and socio- economic culture. Western multinationals/ investors dealing with India so far had to adopt major changes in their business style in order to serve effectively to their customers. This write up examines in detail the prevalent business, socio- economic, and cultural environments that western multinationals have to face in India, as well the implications of their adopted major changes in business practices to succeed in India. Despite revolutionary changes since independence of India, the basic business style has remained the same as of family controlled businesses. Leading business families, from Birlas and Tatas to Reliance, keep total control on business of companies promoted by them. Major management posts in these business houses are always held by responsible family members. Though joint family system is slowly disappearing, but still there is a common tendency in Indian families to own a business. Another...
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...Ana María Hoyos Business Law in China and India Which is more appealing to Latin America? The economy of the United States has been slowing down during the past years, leaving Latin American economies with no alternative but to look into further horizons. Both China and India have been growing and flourishing into attractive alternatives for Latin American businesses. These two fast-growing developing economies represent a great opportunity for Latin American countries especially because both India and China have showed their interest in doing business with Latin America. Additionally, the recent boom of Latin American leftist governments that are not fond of the United States has minimized the gap between the western south and these two Easter giants, increasing the need for joint business ventures and trading partnerships that contribute to the growth of China, India and Latin America. In order to evaluate the relation of Latin American countries with China and India, it is important to analyze the legal systems and regulatory business environments of the Chinese and Indian governments. By developing a concise comparison between China and India, this paper will eventually evaluate which country has more to offer to Latin American economies. Such comparison will be based upon aspects such as legal backgrounds and traditions, basic business regulations, trade laws and others, to finally conclude what sort of government is more appealing to Latin American economies. ...
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...FDI In Insurance INTRODUCTION With the deregulation of insurance industry in India since 1999, private players have got an opportunity to enter in an insurance markets. Prior to its deregulation, the life insurance business was dominated by the public sector company is life insurance Corporation of India. While liberalization of insurance sector, as many as twelve new private life insurance companies were entered with the help of foreign equity up to 26 per cent in the life insurance business apart from the HDFC standard life, which has stand foreign equity only 18.6% in the beginning of insurance business, in the present time there are entire 22 private life insurance companies operating business in India, their in we have selected five private life insurance companies, as like ICICI prudential life insurance (2000), HDFC standard life (2000), Aviva life (2002), SBI life insurance (2001), TATA life insurance (2001). They are entire companies is playing a vital role in life insurance business with motive for exist and prospective customers to provide better facilities in lives saving scheme, future security, investment plan, funds investment etc. Consequently, the public-sector company has been face towards countering the challenges posed by the entered new players in the same business. The private players have been striving to build confidence in customers and get a foothold in the markets. In competitive markets, life insurance companies come out...
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...34-42 www.researchinventy.com Role of Foreign Direct Investment in India: An Analytical Study 1 Dr. Jasbir Singh,2Ms. Sumita Chadha,3 Dr. Anupama Sharma 1 Associate Professor, Maharaja Surajmal Institute, Janakpuri, Delhi Assistant Professor, Maharaja Surajmal Institute, Janakpuri, Delhi 3 Assistant Professor, Maharaja Surajmal Institute, Janakpuri, Delhi 2 Abstract: International Economic Integration plays a vital role in Economic Development of any country. Foreign Direct Investment is one and only major instrument of attracting International Economic Integration in any economy. It serves as a link between investment and saving. Many developing countries like India, are facing the deficit of savings. This problem can be solved with the help of Foreign Direct Investment. Foreign investment helps in reducing the defect of BOP. The flow of foreign investment is a profit making industry like insurance, real estate and business services and serving as a catalyst for the growth of economy in India. The present study is based on the objectives like (a) to know the requirement of amount of foreign investment by India, for its economic Development and (b) to analyze the trend and role of FDI & FIIs in improving the quality and availability of goods has been beyond doubt. To analyze all these objectives data has been gathered through secondary sources like reports and publication of Govt. and RBI relating to foreign Investment. After analyzing all the facts...
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...According to Charles W.L. Hill (1998) “FDI occurs when a firm invests directly in facilities to produce and market a product in a foreign country”. The growth of FDI is more than the growth of world trade and world output so role played by FDI in world economics is very vital. Patterson, N. and Montanjees, M. (2004) say that FDI is the most favoured form of external finance for the reason that it is non-debt creating, non- volatile and the outcome depends upon the projects performance initiated by investors. FDI is advantageous because it facilitates international trade and transfer of technology, knowledge and skills. The purpose of this study is to investigate factors that attract FDI. De Mello (1999) asserts that scope for business in a country, opportunities for expansion, market size etc are some of the factors that attract FDI. Growth rate of a company or an industry leads to magnetism of more and more investment as investors know that their investment is safe enough. According to Dunning, J. (1981) Availability of valuable and unique resources in an industry such as cheap production capacity, cheap skilled labour and advanced technology which are necessary for running a business successfully provides the basis for selecting particular sector or organisation by investors to invest in. By investing in a well established industry or organisation, foreign companies get competitive advantage against the brand image of existing domestic companies with whom they enter the sector...
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