Page 222 - DMGT401Business Environment

Hitesh Jhanji, Lovely Professional University Unit 10: Foreign Trade

Unit 10: Foreign Trade Notes

CONTENTS
Objectives
Introduction

10.1 Foreign Investment
10.1.1 India's FDI Policy
10.1.2 Routes of Foreign Investment

10.1.3 Determinants of FDI
10.1.4 Impact of FDI
10.1.5 Entry Strategies for Foreign Investors
10.2 Multinational Corporations (MNCs)
10.2.1 Multinational, Global, Multi-domestic and Transnational

10.2.2 Benefits of Being MNCs
10.2.3 Impact of MNCs
10.2.4 Demerits of MNCs

10.2.5 MNCs in India
10.3 Summary
10.4 Keywords
10.5 Self Assessment
10.6 Review Questions

10.7 Further Readings

Objectives

After studying this unit, you will be able to:
State the foreign investment condition in India

Describe the idea of Multinational Corporations
Introduction

In last unit you have studied about legal environment. Multi-National Corporations (MNCs)
are an intriguing and, at times, quite a controversial topic. So much so, that they have attracted
enormous attention from economists, sociologists, political scientists, historians, in addition to
scholars of international business. There are, therefore, many different issues and questions that
receive attention in the literature. In this collection, papers cover two over-riding issues. First,
the process of how MNCs emerge, evolve and expand, including the different internationalization
strategies adopted by different firms from diverse contexts. A second, and interrelated, issue is
what happens once an MNC goes abroad: how it is managed, what kinds of tensions, issues and
dilemmas can be generated, and what kinds of consequences its presence has for the host country

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