Thursday, February 6, 2025

Components of FDI, Horizontal & Vertical FDI, Indirect Foreign Investment

Components of FDI:

  • Equity Capital, 
  • Reinvested Earnings and
  • Intra-Company Loans. 

Equity capital: It is investment in equity.

Reinvested Earnings: These are retained profits on the FDI which are reinvested in the market.

Intra-Company Loans: Borrowing and Lending of funds between parent enterprises and affiliate enterprises.

TYPES OF FDI:



Horizontal FDI:- 

When a company invests in the same industry in totality  in which it operates back in its own country .

Vertical FDI:-

  • When a company expands only a part of the production process to another country is referred to as Vertical FDI.
  • This fragmentation of business benefits enterprises, since the production costs in other countries can be way lower than the country of origin.


Indirect Foreign Investment /Downstream Investment: 

  • Investment by an Indian company (owned / controlled by foreigners) into another Indian entity is considered as Indirect Foreign Investment (IFI)
  • Indian entity which has received indirect foreign investment shall comply with the entry route, sectoral caps, pricing guidelines and other attendant conditions as applicable for foreign investment.

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  2. Hello there. My Name is Mrs Theresa Luz. I live in Denver CITY, USA and life is worth living comfortably for me now, I was browsing through Internet i came across a loan company, Sun Loans br Dr Alvin who provides loans at an affordable interest rate, i gave it an attempt and surprisingly i received a loan of $300,000 USD, and i said to myself that i will shout aloud to GOD to bless this GOD fearing lending company Sun Loans by Dr Alvin. And i will advise anyone in genuine and serious need of loan to contact this GOD fearing lending company through their office Email at: sunloans.banks@gmail.com or sunloans.market@gmail.com. or contact Dr Alvin directly at alvintongman27@gmail.com. Thanks

    ReplyDelete
  3. Hello there. My Name is Mrs Theresa Luz. I live in Denver CITY, USA and life is worth living comfortably for me now, I was browsing through Internet i came across a loan company, Sun Loans br Dr Alvin who provides loans at an affordable interest rate, i gave it an attempt and surprisingly i received a loan of $300,000 USD, and i said to myself that i will shout aloud to GOD to bless this GOD fearing lending company Sun Loans by Dr Alvin. And i will advise anyone in genuine and serious need of loan to contact this GOD fearing lending company through their office Email at: sunloans.banks@gmail.com or sunloans.market@gmail.com. or contact Dr Alvin directly at alvintongman27@gmail.com. Thanks

    ReplyDelete

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