Why Foreign Investors Need to Look at Political Risks in India - Essay Example

Only on StudentShare

Extract of sample
Why Foreign Investors Need to Look at Political Risks in India

Some of the emerging markets that have captured the attention of intellectuals around the world are China, India, Brazil, Russia, Mexico, Indonesia and Turkey. Among the above list, China and India are the markets with the greatest potential. These are the markets where companies enter for quick return on investments. “Even though emerging markets generally do not have the level of market efficiency and strict standards in accounting and securities regulation like advanced economies -- such as the United States, Europe and Japan -- they are most sought after by investors for the prospect of high returns, as they often experience faster economic growth as measured by GDP.” (Rediff Business, 2011) China’s economy is the fastest growing economy in the world at present. Similarly, India’s growth rate is expected to surpass even that of Japan. Studies by various organisations show that the emerging market economies are set to overtake all the G7 economies by 2020. Such studies do have enough reasons to substantiate their views. This essay will deal with the strategic expansion of IKEA with its Greenfield operations in India. India had recently opened up its market for 100% Foreign Direct Investment (FDI) in the retail sector. ...Show more

Summary

Emerging markets are the new development strategy of almost all multinational corporations at present. Several rounds of crisis in the western countries, uncertainty on the future of developed nations, and other economical and demographical issues at the developed countries had resulted in the companies looking for opportunities in the emerging economies…
Author : rabernathy
Why Foreign Investors Need to Look at Political Risks in India essay example
Read Text Preview
Save Your Time for More Important Things
Let us write or edit the essay on your topic
"Why Foreign Investors Need to Look at Political Risks in India"
with a personal 20% discount.
Grab the best paper

Related Essays

Legal and Financial Structure of Project Finance in India
This study utilized the articles and reports of authentic journals and working papers published by educational, financial and environmental institutions. The findings suggest that perceptions of political and legal nature, corruption, and economic risk can hinder project finance and foreign investments in the Indian market.
14 pages (3500 words) Essay
Critically assess how international investment law should be modified to address the growth of foreign direct investment from em
In 2011, FDI outflows from emerging markets increased by 25%.2 A majority of these states have implemented reforms liberalising capital markets to increase capital inflows from FDIs and to appeal to foreign investors.3 However, there is a developing trend indicating some degree of institutional weakness in terms of political and legal risks and concerns about market efficiency4.
23 pages (5750 words) Essay
International Corporate Finance
Afterwards the political and the financial risks associated with conducting business in both of the countries have been discussed in detail. The foreign direct investments (FDI) and their influence on the economy of both of the countries have been studied in the paper.
11 pages (2750 words) Essay
Political systems in India
Turning a blind eye to specific consumer requirements would not only stunt the project's success, it can devastate the company's fortunes in the long run. The Indian market, like all others, has certain specific requirements that have to be fulfilled. A consumer market which is perhaps the largest in Asia, India's consumer community is a perfect mix of the choosy, open-minded and liberal sorts of people.
2 pages (500 words) Essay
Japanese Economy Evaluation of Opportunities for Foreign Investors
The average Japanese household has over $100,000 in savings, and disposable income of $4,100 per month. From 1995 to 2005 Japan had a very slow growth due to; a banking system struggling to deal with a bad loan problem, soaring government debt, unprofitable domestic firms and a political system in transition.
21 pages (5250 words) Essay
What are the possible legal implications of nationalisation ( expropration) regarding foreign oned properties in International Law
Bilateral investment treaties have made some difference, but international investments are still full of political risks that should be
32 pages (8000 words) Essay
International businesses look to locate foreign operations in countries which are stable. Outline and critically discuss the criteria by which they judge whether or not a country is stable
The English East India Company also had the dubious distinction of conquering and forcefully establishing trade with Asian countries especially India. The way international business has been done has changed over the years and the political aspect has now been under the
12 pages (3000 words) Essay
Factors that affect Foreign Direct Investment
Factors that affect foreign direct investments inflow and outflow are wide and relate to both domestic and international levels of economies. Objectives of FDIs are mostly to
60 pages (15000 words) Essay
Growing Importance of India For Investors (ie, India is the next China)
According to UN reports, Indians under the age group of 15 years and over 64 years has declined from 69% in 1995 to 56% in 2010. According to a Morgan Stanley report India’s working population is expected to increase by 136million by 2020 (The Economist, “A Bumpier
2 pages (500 words) Essay
Foreign Direct Investment for Developing Countries
This has led to most developing countries and to a large extends developing economies and those still in transition to divert they attention to FDI as the main source of economic development. Chaudhuri and Mukhopadhyay
11 pages (2750 words) Essay
Get a custom paper written
by a pro under your requirements!
Win a special DISCOUNT!
Put in your e-mail and click the button with your lucky finger
Your email
YOUR PRIZE:
Apply my DISCOUNT