Foreign Direct Investment Policies Of India With Respect...

Research Topic: Analytical Study of Foreign Direct Investment Policies in India with respect to E-commerce Retailing Sector. Student Id: 9791265 Course: Msc International Business and Management Introduction Foreign Direct Investment (FDI) is the control of the operations or the ownership of domestic companies by foreign companies. It normally involves establishing operations or acquiring tangible assets.(Foreign direct investment definition from financial times lexicon, no date) There are three types of FDI: Horizontal: When a company carries out the same activities across international borders that they used to do in home country. Vertical: When different stages of activities are added abroad. Like, Honda acquires car†¦show more content†¦Global players found India as the emerging market and big opportunity to invest in and highest percentage increase in FDI was found in housing and construction sector (Bennett, 2008). . Research Objectives 1. To understand what is FDI and how does it impact the economy. 2. To study the E-commerce retailing sector of the country. 3. To study the implications of the FDI policy of the country with respect to retailing sector. 4. To study the growing trend of FDI in the country. 5. To understand the impact of FDI in the retail sector. 6. To study the factors leading to higher FDI in the country. 7. To understand the change i.e. increase and decrease of GDP growth rate with the fluctuations in FDI. Research Question 1. Why FDI is not allowed in inventory-based model of e-commerce? 2. Consequences of 100% FDI being allowed in Multi Brand Retailing? 3. What is the impact of FDI in e-commerce sector? Literature Review Foreign Direct Investment plays a vital role in the growth of recipient countries (de Mello, 1997). FDI inflows help recipient country with the financial resources and even employment that may not be available with them; this helps boosting the economic performance of the country. FDI increase the production output of the country and more efficient use of resources by getting in more advanced technology and funds and by observing the unemployed resources of the