International Financial Management: An Analytical Framework

CHAPTER 14

Foreign Investments

CHAPTER OBJECTIVES

After studying this chapter, you should be able to:

1. Understand the concept of foreign investments and their role in the economic development of a country.
2. Discuss the various forms and theories of foreign direct investments (FDI) and explain the economic advantages of FDI.
3. Discuss the factors that influence FDI.
4. Understand India’s foreign investment policy and the regulations that govern foreign investments in India.
5. Have insights into foreign investments made by Indian companies.
6. Discuss the global trends in FDI and look at the causes for low FDI in India.

Introduction

Alongside the globalization of trade, there has been a parallel growth in foreign investments. International investments ...