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. ...
Download paper


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

Related Essays

The benefits of international portfolio investment
11 pages (2761 words) Essay
Market analysis for private investors
7 pages (1757 words) Essay
Finance and Accounting Research Paper
5 pages (1255 words) Research Paper
The European Sovereign Debt Crisis
8 pages (2008 words) Research Paper
Importance of institutional investors for financial markets
8 pages (2008 words) Essay
Foreign Investment in Oil and Gas Sector in Kurdistan Region of Iraq
52 pages (13052 words) Dissertation
International Financial Management
10 pages (2510 words) Essay
MNC Enters India
8 pages (2008 words) Term Paper
financial planning and wealth management
4 pages (1004 words) Essay
Got a tricky question? Receive an answer from students like you! Try us!