FOREIGN DIRECT INVESTMENTS
1.FDI had valid useful for a creation of jobs in a country. But today things have changed. We no longer need to create low pay jobs as you no longer have a workers. These jobs go to a unfamiliar workers. This does not benefit us much.
2.Besides a unfamiliar investors move in frequency any capital. They steal locally from unfamiliar banks handling here. During a taxation holiday period they pay no tax. After a holiday is over they equivocate profitable taxation through transfer pricing i.e. by selling their products to companies owned by them established in low-tax countries.
3.They additionally enjoy a subsidies for fuel as well as electricity.
4.FDI for investment in a batch market is most liked by a batch exchage as there would be more commission. But a unfamiliar funds, especially pension funds deposit in sequence to push up batch prices. The index would rise. The moment something happens, together with descending share prices in New York or other cities, unfamiliar investors would dump their holdings as well as lift put of a nation (flight to quality). They would have outrageous capital gains though internal investors who had followed them would be left land a devalued shares. Huge amounts of market capital would be lost. This was what happened in a financial predicament of 1997-98.
5.We should be more resourceful with FDI. Where there is internal capacity as in property growth in directed towards corridors, as well as Government is peaceful to deposit in infrastructures, there is no necessity to invite unfamiliar investors. Certainly you should not encourage unfamiliar developers to rise tall price projects that have been not within strech of internal buyers. Rather Government should assistance internal investors to rise these specialised areas by office building indispensable infrastructure.
6.If you wish to have FDI, it should be confined to industries that move in technologies that can add tall value to a products. The pay for a workers durin! g opposi te levels should be aloft as such industries can means aloft pay. In fact you should proviso out a industries dependent on cheap labour. Wherever possible, incentives such as taxation exemptions should be since to industries owned by locals if they move in technologies from abroad. Even a expansion of sure locally-owned industries should be since incentives by a Government. This is a strategy employed by Japan as well as Korea. By ancillary internal industries to grow big, they now have universe category business with their own code names.
2.Besides a unfamiliar investors move in frequency any capital. They steal locally from unfamiliar banks handling here. During a taxation holiday period they pay no tax. After a holiday is over they equivocate profitable taxation through transfer pricing i.e. by selling their products to companies owned by them established in low-tax countries.
3.They additionally enjoy a subsidies for fuel as well as electricity.
4.FDI for investment in a batch market is most liked by a batch exchage as there would be more commission. But a unfamiliar funds, especially pension funds deposit in sequence to push up batch prices. The index would rise. The moment something happens, together with descending share prices in New York or other cities, unfamiliar investors would dump their holdings as well as lift put of a nation (flight to quality). They would have outrageous capital gains though internal investors who had followed them would be left land a devalued shares. Huge amounts of market capital would be lost. This was what happened in a financial predicament of 1997-98.
5.We should be more resourceful with FDI. Where there is internal capacity as in property growth in directed towards corridors, as well as Government is peaceful to deposit in infrastructures, there is no necessity to invite unfamiliar investors. Certainly you should not encourage unfamiliar developers to rise tall price projects that have been not within strech of internal buyers. Rather Government should assistance internal investors to rise these specialised areas by office building indispensable infrastructure.
6.If you wish to have FDI, it should be confined to industries that move in technologies that can add tall value to a products. The pay for a workers durin! g opposi te levels should be aloft as such industries can means aloft pay. In fact you should proviso out a industries dependent on cheap labour. Wherever possible, incentives such as taxation exemptions should be since to industries owned by locals if they move in technologies from abroad. Even a expansion of sure locally-owned industries should be since incentives by a Government. This is a strategy employed by Japan as well as Korea. By ancillary internal industries to grow big, they now have universe category business with their own code names.
Comments