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In: Economics

HOW FDI, investment (low saving cause banks cannot making loan for investment, low fdi, low import and export,)

Key problem (interconnection of the problems) in INDIA

HOW FDI, investment (low saving cause banks cannot making loan for investment, low fdi, low import and export,)Countries with low production are less attractive to foreign direct
investment than countries that are more productive.(800 words ) For the assignment if can try to use more journal article ya guys

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Expert Solution

A foreign direct investment (FDI) is an investment made by a firm or individual in one country in to business interests loateed in another country. The three types of FDI are Horiziontal FDI, Vertical FDI and Conglomerate FDI.Reduce restrictions and  provide open transparent and dependable conditions for all kinds of firms, whether foreigh or domesitc.. In the case of horizontal FDI, the company does all the same activities abroad as at home.. In the case of vertical assignments different types of activities are carried out aborad. in conglomereate investmetn the investment is made to acquire an unrelated business abroad. It is the most surprising form of FDI. It required overcomig two barriers- one entering a foreign country and two working in a new industry

The benefit of FDI has the following

Boost to international trade,

Reduced local tensions

sharingn of resources

diversification

tax inentives

employment and economic boost

FDI is an important source of externally derived finanfnce that offers countries with limited amounts ofcapital get finace beyond national borders from wealtheir countries..


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