ibm unit-06 (foreign direct investment)

07/06/10 1

By :

Prof. Amit Kumar

07/06/10 2

“A student pursuing management education from IILM-

Graduate School of Management, for example may find

himself or herself placed in a firm located in a totally

different country. Knowledge about international

business keeps the youngster mentally prepared to

accept assignment in an alien environment. Forewarning

is definitely forearming, for the fresh management

graduate”.

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Importance of this course

Global Business Management

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Course: International Business Management

1. Globalization

2. Global Trade & Theory

3. Global Technological Environment

4. Global Economic Environment

5. Global Political-Legal Environment

6. Foreign Direct Investments

7. Regional Economic Integration

8. Strategy and Structure of International Business

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Contents

• Nature of FDI, Why FDI?• Forms of FDI, Modes of FDI Entry• Theories of FDI• Measures to Attract FDI• Case-Study: ‘L & T Saga Continue’• Presentation: Factors Influencing FDI, New Investment

Policy(09-14)• Case-Study: ‘Honda in North America’

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Global Business Management Foreign Direct Investment

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In simple terms, FDI refers to the purchase of a

significant number of shares of a foreign company

in order to gain certain degree of management

control. The core of FDI are the international

flows of capital. What share of equity bestows

management control in a foreign company?

Introduction

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• Countries set different thresholds at which they classify an international capital flow as FDI.

• Most governments set the threshold at anywhere from 10 to 25 percent of equity ownership in a company abroad (In US, it is 10 percent).

• In contrast, an investment that does not involve obtaining a degree of control in a foreign company is called portfolio investment.

Introduction

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The UN’s World Investment Report goes beyond

equity investment. According to the Report, FDI

includes three components,

1. Equity capital

2. Reinvested earnings

3. Intra-company loans

Nature of FDI

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FDI inflow in India said to include the following: 1. Reserve Bank of India’s automatic approval route for

equity holding up to 51 percent.

2. FIB’s discretionary approval route for larger projects with equity holding greater than 51 %.

3. Acquisition of shares (since 1996).

4. RBI’s non-resident Indian (NRI) schemes, and

5. External commercial borrowings (ADR/GDR route).

Indian FDI

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http://www.rbi.org.in/Scripts/bs_viewcontent.aspx?Id=348

http://www.rbi.org.in/scripts/FAQView.aspx?Id=52

http://www.fipbindia.com/

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• Indian definition of FDI differs from that of the IMF, as well as of the World Investment Report.

• IMF’s definition includes external commercial borrowings, reinvested earnings and subordinated debts, while the World Investment Report excludes external commercial borrowings.

Nature of FDI

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Why do countries want FDI? There are strong

reasons why MNCs are welcomed to invest in

foreign countries.

Why FDI?

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Why FDI?

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1. Filling the gap between domestically available

Supplies of savings, Foreign exchange earnings, Government revenue and Human capital skills (management, technology)

and the desired level of these resources

necessary to achieve the development targets.

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Why FDI?

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2. Factories set up by MNCs act as nuclei of growth. An industrial enterprise established by a foreign

company gives birth to several other enterprises which supply inputs to current company.

It is not as if only a few surrounding firms are the beneficiaries. An entire industry, steel for

example, may get a boost. It is estimated that every dollar of FDI increases domestic

investment by 80 percent.

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Why FDI?

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3. FDI can generate healthy competition in the recipient countries.

When FDI assumes the form of green field projects, the results is the creation of new enterprises, adding to the number of players in the market.

Intense competition enhances consumer choice, trends to bring down prices and boost economic welfare of the consumers.

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Why FDI?

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3. FDI can generate healthy competition in the recipient countries.

But when MNCs buy out popular local Brands/

companies, benefits from expected competition will

not result. For example,

Such acquisition do not

add to any additional benefits to economy.

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Why FDI?

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4. Too often, location advantages attract FDI. Hyundai, automobile giant (South Korea), has

chosen Chennai for its new car manufacturing plant. • Skilled labour at low wages,• Location of auto parts manufacturers such as

Wheels India, Brakes India, Sundaram Fasteners/Brakes, Bimetal Bearings, and India Pistons in and around Chennai,

• Guaranteed power supply, Cheap land and • Proximity to sea port have attracted the plant to

the capital city of Tamil Nadu.

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4. Too often, location advantages attract FDI. France has been the target of much MNC activity.

Daimler-Chrysler has recently built a new factory in France because of its faith in the worker’s productivity and work ethics.

This explains the FDI undertake by many of the world’s oil companies, which had to invest where oil was located.

Why FDI?

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Why FDI?

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5. FDI often depends on a country’s political attempts to reduce security risks. For example:

Another move behind FDI…During the 1980s, the US government instituted various incentives to increase the profitability of US investments in Caribbean countries that were unfriendly to Cuba’s Castro regime.

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Why FDI?

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US wanted to strengthen the economies of those friendly nations through growth of the FDI and make it difficult for unfriendly leftist govt. to gain control.

With the end of Civil war, US ended investment incentives in Caribbean region, and much investment was diverted to Mexico because of NAFTA.

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Why FDI?

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Chinese state-owned petroleum companies have been investing abroad so as to minimize dependence on foreign companies for oil supplies. The move may also help China hold down prices on the petroleum it receives.

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6. It is the poor countries that deserve FDI more than any others.

How to alleviate poverty? Aid from international institutions and rich countries can be a temporary measure. Economic growth ushered in by increased investment can be a permanent solution.

Why FDI?

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6. It is the poor countries that deserve FDI more than any others.

‘Many of the poorest countries are simply being bypassed by globalization, and the promises of

the rich countries are not being fulfilled. We need more globalization that reaches poor countries. He added that FDI would be the strongest engine of growth in the developing world’.

Why FDI?

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TYPES OF FDI

NATURE OF BUSINESS MOTIVE BASED VIEW

ASSET- BASED VIEW

ASSET AUGMENTING ASSET ACQUIRING

GREENFIELD INVESTMENT MERGER & ACQUISITION

BROWNFIELD

Horizontal Vertical

Conglomerate

ResourceSeeking

MarketSeeking

EfficiencySeeking

StrategicAssetSeeking

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TYPES OF FDI

NATURE OF BUSINESS

Horizontal

Vertical

Conglomerate

• This FDI said to take place when a firm invests abroad in the same industry in which it operates in the home country.

• It represents, a geographical diversification of the MNE’s established domestic product line.

• Most Japanese MNEs believe that this approach enables them to share experience, resources, and knowledge already developed at home, thus reducing risk.

• The acquisition of Ranbaxy, a leading Indian pharmaceutical MNE, by Japan’s Daiichi Sankyo is an example of horizontal FDI.

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TYPES OF FDI

NATURE OF BUSINESS

Horizontal

Vertical

Conglomerate

• This FDI refers to investment in activities along the firm’s existing supply chain to avail the benefits of vertical integration.

• It occurs when the MNE enters a foreign country to produce intermediate goods that are intended for use as input in its home country production process (backward vertical FDI), or to market its homemade products overseas (forward FDI).

• ONGC, which is in the business of petroleum refining in India, has purchased oil fields in South Africa.

• When Volkswagen entered the US market it acquired a large number of dealers rather than distribute its products through independent US dealers.

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TYPES OF FDI

NATURE OF BUSINESS

Horizontal

Vertical

Conglomerate

• If FDI abroad is to manufacture products not manufactured by the parent company at home, it is called conglomerate FDI.

• Hong Kong MNEs often set up foreign subsidiaries or acquire local firms in mainland China to manufacture goods that are unrelated to the parent company’s product portfolio.

• The main purpose is to seize emerging market opportunities.

“ Horizontal FDI is used by both developed and developing country MNEs. It enables MNE to quickly establish its competitive advantage in the host country. Conglomerate FDI involves more difficulties”.

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TYPES OF FDI

MOTIVE BASED VIEW

ResourceSeeking

MarketSeeking

EfficiencySeeking


• This FDI attempts to acquire particular resources at a lower real cost than could be obtained in the home country.

• Resource-seeking FDI occurs when there is need to acquire or secure the supply of raw materials and energy sources in short supply at home.

• Mainly classified into three groups:1. Those seeking physical resources.

2. Those looking for plentiful suppliers of cheap and/or skilled labor.

3. Those seeking technological, organizational and managerial skills.

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TYPES OF FDI

MOTIVE BASED VIEW

ResourceSeeking

MarketSeeking

EfficiencySeeking


• Market-seeking FDI attempts to secure market share and sales growth in the target foreign market.

• Apart from this, the reasons for Market-seeking FDI includes:

1. The firm’s main suppliers or customers may have set up foreign producing facilities abroad and the firm needs to follow them overseas;

2. The firm may consider it necessary, as part of its global production and marketing strategy, to maintain a physical presence in the leading market served by its competitors.

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TYPES OF FDI

MOTIVE BASED VIEW

ResourceSeeking

MarketSeeking

EfficiencySeeking


• Efficiency-seeking FDI aims to take advantage of different factor endowments, economic systems, policies and market structures to concentrate production in a limited number of locations and reduce cost of operation.

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TYPES OF FDI

MOTIVE BASED VIEW

ResourceSeeking

MarketSeeking

EfficiencySeeking


• This FDI attempts to acquire the assets of foreign firms so as to promote their long-term strategic objectives, especially advancing their international competitiveness.

• MNEs with this intension often establish global strategic alliances or acquire local firms.

• Procter & Gamble has sales in over 140 countries and on the ground operations in over 70 countries. Its strategic aims behind product and geographical diversifications include better resources, larger markets and higher efficiency.

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TYPES OF FDI ASSET-BASED VIEW

ASSET AGUMENTING ASSET ACQUIRING

GREENFIELD INVESTMENT MERGER & ACQUISITION

BROWNFIELD

• Greenfield investment is an investment process which results in the creation of new assets in the host country.

• M & A as a form of investment may either involve the outright purchase of an existing company or the amalgamation of two existing companies.

• Brownfield investment is a combination of Greenfield investment and M&A. It denotes an investment where an existing firm acquires another firm and infuses it with fresh capital and assets after the acquisition.

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Modes of FDI Entry

BRANCH OFFICE

Co-OperativeJoint Venture

EquityJoint Venture

SUBSIDIARY

JOINT VENTURE(GSA)

GreenfieldInvestment

Merger &Acquisition

UMBRELLA HOLDING COMPANY

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Modes of FDI Entry

BRANCH OFFICE

A branch office is a foreign entity in a host country in which it is not incorporated but exists as an

extension of the parent and is legally constituted as a branch. They are entitled to run businesses within

a specified scope or location.

Corporate law in many countries allows foreign companies to open branches that engage in production and operating activities.

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Modes of FDI EntryBRANCH OFFICE

• Branch offices are particularly utilized by transnational banks, law firms and accounting or consulting companies.

• Britain’s Standard Bank had 1,000 branches in South Africa in 2001, and was ranked the largest foreign bank in that country.

• Branch offices may offer a simple means for establishing or expanding a presence in a target country, but since they do not have legal-person status, the foreign parent company is liable if civil charges are brought against the branch.

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Modes of FDI EntryJOINT VENTURES

• These can take the form of either cooperative (contractual) Joint Venture or Equity Joint Ventures.

• These are gaining importance worldwide as global competition intensifies for access to market, products, and technologies.

• Most large MNCs such as Motorola, Siemens, Sony, GM, Daimler, and Toyota have built such alliances.

• In Japan alone, Royal Dutch Shell has established more than 30 joint ventures.

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Modes of FDI EntryCO-OPERATIVE JOINT VENTURE

• It is a collaborative agreement whereby profits and other responsibilities are assigned to each party according to a contract. These are not necessarily according to each partner’s percentage of the total investment.

• Many cooperative programs today involve joint activities without the creation of new corporate entity. Like, Research partnership, co-production, joint marketing, long-term supply agreement.

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Modes of FDI EntryCO-OPERATIVE JOINT VENTURE

Boeing entered in China in the late 1970s through a co-

production agreement with the Xian Aircraft Manufacturing

Company which co-produced 737 vertical fins, stabilizers

and 757 cargo doors.

• Co-operative Joint venture normally take the form of a document (agreement), whereas equity joint venture take the form of new entity.

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Modes of FDI Entry

EQUITY JOINT VENTURE

• The most common foreign entry for MNCs has been through equity joint ventures, establishing a new entity that is jointly owned and managed by two or more parent firms in different countries.

• To set up an equity joint venture, each partner contributes cash, facilities, equipment, materials, intellectual property rights, labor or land use rights.

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Modes of FDI Entry

EQUITY JOINT VENTURE

According to JV laws in most countries, a foreign investor’s share must exceed a certain threshold of the total equity (25% in many nations). However, in government controlled or institutionally restricted sectors, foreign investment is often restricted with respect to equity arrangement.

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Modes of FDI EntryUMBRELLA HOLDING COMPANY

• Umbrella holding company is an investment company that unites the firm’s existing investments such as branch offices, joint ventures, and wholly-owned subsidiaries under one umbrella so as to combine sales, procurement, manufacturing, training and maintenance within the host country.

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• DuPont (as MNE that are multidivisional) faced the coordination problem in China. Some joint venture there belong to, and are controlled only by, its pharmaceutical division, whereas others belong to its plastic or petroleum divisions. In 1989 it established DuPont China Ltd as its holding company to unite and integrate existing investments.

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“ To establish an umbrella company, MNEs may need to comply with certain conditions set by the host-country government. In China, for example, the foreign investor must have established a minimum of 10 subunits in the country and engaged in manufacturing or infrastructure construction to which it has contributed at least $30 million in registered capital”.

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Modes of FDI EntryDifferences: (Joint Venture Vs Mergers)

1. The major difference between equity joint venture and mergers is that the former involves formation of a third entity whose duration is often limited and specified in the contract, whereas the latter does not form any third party nor does it specify any duration.

2. Joint venture parties remain independent after forming a venture, but two parties are integrated into a single organization after a merger.

3. Also, mergers combine all of the partners’ assets, while a joint venture involves only some of these assets.

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Theories of FDI

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Theories of FDI

Theories of FDI

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Eclectic

MarketImperfections

International Product

Life Cycle

Internalization

MarketPower

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Theories of FDIInternational Product Life Cycle

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• IPLC theory, propounded in 1960s by Raymond Vernon of Harvard Business School, has two lessons: why trade takes place? and why investment occurs?.

• Theory explain how a company will begin by exporting its products and eventually undertake foreign direct investment, as the product moves through its life cycle.

• Theory has identified 3 stages in the life of a product:

1. New Product Stage

2. Maturing Product Stage

3. Standardized Product Stage

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Theories of FDI Market Imperfections

• Market imperfection can be defined as anything that interferes with trade. It focuses on imperfections in the market (example trade barriers) that would decide FDI.

• According to Hymer, Kindleberger and Caves, the existence of MNCs is reasoned by structural market imperfections.

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Perfect or Pure Competition in Market

In economics, perfect competition occurs in markets in which no participant has market power i.e. every

participant is a "price taker“.

Specific characteristics may include:

* Infinite Buyers/Infinite Sellers.

* Zero Entry/Exit Barriers – It is relatively easy to enter or

* Perfect Information - Prices and quality of products

* All firms have relatively small market shares.

* Homogeneous Products – firm sales identical product

Managing MNCs in International Business

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Theories of FDI Eclectic Theory

John Harry Dunning, (June 26, 1927 – January 29, 2009) was a British economist. He researched the economics of international direct investment and the multinational enterprise from the 1950s until his death. In the 1980s, he published the eclectic paradigm or OLI-Model/Framework as further development on the theory of FDI.

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According to Dunning, FDI will occur when three conditions (advantages of ownership, location and internalization ) are uniquely combined.

Ownership Advantage: – This advantage stems from the fact that the firm is

proprietary to some unique competitive advantage that helps it overcome the disadvantages of competing with foreign firms in overseas markets.

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Ownership Advantage:

‘IBM generates significant income from its voice recognition software used by many Chinese. This software, first developed in the US, did not generate sizeable income until a Chinese version was developed by the company’s subsidiary in Beijing’.

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Location Advantage:– Advantage of locating a particular factory in a

specific location because of unique characteristics of that location. Like, Availability of natural resources such as oil in the Middle East, timber in Canada and Copper in Chile.

– Cater Pillar, manufactures bulldozers in Brazil to take advantage of lower labour costs and avoid high tariff walls on goods exported from its US factories.

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Internalization Advantage:– Internalization refers to the firm’s inherent flexibility

and capacity to produce and market through its own internal subsidiaries, rather than producing through an arrangement such as licensing or....

– The firm must benefit from controlling (internalizing) the foreign business activity than leaving it to a local company to provide the service.

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Ownership Advantage

Location Advantage

Internalization Advantage

1.Exporting YES

2.Licencing YES YES

3. Franchising YES YES

4. FDI YES YES YES

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Theories of FDI Market Power

• This theory states that a firm seeks to establish a dominant market presence in an industry by undertaking FDI. Dominant market presence results in greater profits to the firms.

• Market power is often sought to be achieved through vertical integration. Such integration may be the extension of the company’s activities into its supply chain (backward) or absorbing of its output (forward).

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Theories of FDI Market Power

Increasing numbers of manufacturers today are pursuing a forward integration strategy by establishing websites to sell products directly to consumers.

Backward integration strategy can be especially appropriate when a firm’s current suppliers are unreliable, too costly or cannot meet the form’s needs.

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Theories of FDI Internalization Approach

• Propounded by Buckley and Casson, the internalization theory is based on two principles:

1. Firms internalize missing or imperfect external markets

2. Firms choose locations for their constituent activities to minimize the overall costs of their operations.

• The location aspect of the theory suggests three primary motivations:

1. Foreign-market-seeking FDI

2. Efficiency (cost reduction)-seeking FDI

3. Resource-seeking FDI

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Theories of FDI Internalization Approach

• Market-seeking FDI will be undertaken by firms for traditional trade supporting reasons, to access distribution networks, to facilitate the exports of domestic products and to enhance exports from the host country.

• Efficiency-seeking FDI will occur when outward investors seeks lower-cost locations for operations, in particular, in their search for lower cost labor.

• Resource-seeking FDI occurs when there is need to acquire or secure the supply of raw materials and energy sources in short supply at home.

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Factors Influencing FDI

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Factor Influencing FDI

SupplyFactors

DemandFactors

Government Factors

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SupplyFactors

Production costs

LogisticsResource availability

Access to technology

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Supply Factor: Production Costs

Firms seek competitive advantage through low production cost. MNCs locate production facilities in low wage

countries.

• Local incentives were the main objective behind establishing manufacturing operations by Intel in Costa Rica and by Mercedes in Alabama.

• Ford has set up a company at Chennai to make one lakh vehicles per annum. Ford plans to export cars to South Africa from Chennai.

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Supply Factor: Logistics

MNCs seek to invest in subsidiaries in foreign markets if the cost of shipping raw material is high.

• Coke and Pepsi have set up bottling plants in India as the cost of transporting water from the country is considerable.

• The liberalization of Latin American markets brought a surge of FDI in transportation and physical distribution, and foreign logistic providers have upgraded the region’s transportation and warehousing facilities.

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Supply Factor: Natural Resources

MNCs tend to utilize FDI to access natural resources that are critical to them. Natural resources attract many MNCs.

• Because of decrease in oil production in US, many oil companies have been forced to make significant investment worldwide to obtain new oil reserves.

• To access cheaper energy resources used in manufacturing, Japanese firms are relocating production in China, Mexico & Vietnam, where energy cost is lower.

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Supply Factor: Access to Technology

Motive behind FDI is to get access of technology.

• Many of the Swiss Pharmaceutical companies, have invested in US small biogenetics companies in order to gain cutting edge technology.

• Britain’s Smith Kline (now merged with Glaxo) invested $86 millions in Cadus Pharmaceutical of New York to access the latter’s yeast work.

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DemandFactors

Customeraccess

Followclients

Follow rivals

Exploitation of competitive advantage

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Demand Factor: Customer Access

Certain MNCs need to be physically present in foreign markets to serve customers better.

• Starbucks can not serve fresh coffee to its customers in Japan from its head office in the US nor can KFC provide freshly fried chicken in India from its restaurant in US.

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In a significant step toward market entry in India, U.S.-based Starbucks Coffee Company signed a non-binding

memorandum of understanding (MoU) with Tata Coffee, one of the region's leading providers of premium Arabica

coffee beans.

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The MoU will create avenues of collaboration between the two companies for sourcing and roasting high-quality green coffee beans in Tata Coffee's facility in Coorg in south India.

In addition, Tata and Starbucks will jointly explore the

development of Starbucks retail stores in associated retail outlets and hotels.

The two companies also will explore social projects to positively impact communities in coffee growing regions

where Tata operates.

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Tata Coffee Chairman R. K. Krishna kumar said, “We welcome Starbucks entry into India because of its unique experience with the store format and for its commitment to

society, values that we share.”

“India is one of the most dynamic markets in the world with a diverse culture and tremendous potential,” said Starbucks Coffee Company Chairman, President and CEO Howard

Schultz.

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Demand Factor: Competitive Advantage

A company enjoying great reputation may seek to establish subsidiaries in overseas countries to encash on its

popularity.

An owner of a valuable trade mark, brand name or technology may choose to operate in foreign countries rather than

export to them.

• Toyota’s presence in India, though it entered Indian market late, Toyota has been able to leverage its world wide reputation & position itself well among Indian buyers.

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Demand Factor: Follow the Clients

Often, clients of a company attract FDI. If one of the clients build a foreign facility, the company may decide to locate

a new factory of its own nearby, thus enabling it to continue to supply its customer promptly and attentively.

• When Japanese automakers set up their plants in the US, several Japanese component parts suppliers also joined the bandwagon by establishing their own factories, warehouses and research facilities there.

• Similarly, after Samsung decided to construct and operate an electronics factory in northeast England, six of its Korean parts suppliers also moved into England.

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Demand Factor: Follow the Rivals

Competitor analysis indicates the geographic strength and weaknesses of individual rivals. From such analysis,

firms can select markets for investment.

MNCs routinely monitor market sizes and growth rates in over 150 countries. Always, large and medium-sized growth

markets are attractive one.

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Market Growth /Size

Growth Stable Declining

Large 1 2 3

Medium 4 5 6

Small 7 8 9

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Government Factors

Economic priorities

Avoidance ofTrade barriers

Economic development

incentives

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Government Factor: Economic Priroties

Economic priorities of developing countries often clash with profit motives of MNC. Hence, developing countries

impose restrictions on the flow of FDI into their economies.

• Compared to other developing countries, India followed a restrictive policy towards FDI until 1991, relying more on bilateral and multilateral agreements.

• Precisely for many reasons, MNCs were avoiding investment in India till 1991. But, as is too well known, the scenario in India is totally different now.

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Government Factor: Avoidance of Trade barriers

Fuji Photo Film Company has invested $200 million to set up a manufacturing plant in the US.

• Earlier, the company supplied film to its US customers from its factories in the Netherland and Japan. While exporting to the US, Fuji was paying 3.7 percent of tariff imposed by the US government. This tax has been saved by producing film in the US itself.

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Government Factor: Developmental Incentives

Many governments offer attractive incentives, many through red carpet welcome to MNCs, to invest in their

economies, particularly the developing countries.

The primary motive to attract FDI is to fill the resource gaps which exist in industrializing countries.

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FDI is allowed under two routes:

• Automatic Route : Where RBI approval is required

• Non-automatic Route : where approval from government is required

In the following areas 100% FDI is allowed….

Areas where FDI is Permitted

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1. Airports

2. B2B e-commerce

3. Drugs & pharmaceuticals not falling under automatic route

4. Integrated township development

5. Courier services other than distribution of letters

6. Non-banking financial services

7. Hotel & Tourism

8. Software development

9. Film industry

Areas where FDI is PermittedAutomatic Route

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1. Private oil refineries

2. Pollution control and management

3. Management consultancy

4. Venture capital funds/companies

5. Exploration and mining of minerals other than diamonds and precious stones

6. Food processing and many more

Areas where FDI is PermittedAutomatic Route

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1. Gambling & betting

2. Atomic energy

3. Lottery business

4. Business of chit fund

5. Nidhi company

6. Agricultural or plantation activities (excluding floriculture, horticulture, development of seeds, animal husbandry, cultivation of vegetables, mushrooms etc. under controlled conditions) and plantations (other then tea plantations).

Areas where FDI is not Permitted

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• http://www.gmrgroup.in/Corporate/Partners___Alliances.html• http://www.unctad.org/Templates/Page.asp?intItemID=4979• http://dgftcom.nic.in/exim/2000/policy/ftp-plcontent-0910.htm• http://commerce.nic.in/• http://commerce.nic.in/trade/national_ftpp.asp?id=3&trade=n

Important Links

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http://www.gmrgroup.in/Corporate/Partners___Alliances.html

http://www.unctad.org/Templates/Page.asp?intItemID=4979

http://dgftcom.nic.in/exim/2000/policy/ftp-plcontent-0910.htm

http://commerce.nic.in/

http://commerce.nic.in/trade/national_ftpp.asp?id=3&trade=n

ibm unit-06 (foreign direct investment)

Documents

equity investment

core of fdi

forms of fdi

fdi inflow

foreign company

indian definition of

fdi casestudy

portfolio investment