Legal Framework And Issues Impacting The Business Environment Faced By Foreign Companies Investing In India

This book deals with the complex and often challenging process for international companies in expanding their business through investing in the Indian emerging market. The process of globalization has allowed for the progressive fading of economic, commercial, and technological boundaries. This has resulted in Multinational firms or enterprises becoming increasingly referred to as key players in the world market over the course of the past fifty years. Inward Foreign Direct Investment flows have increased significantly, not only worldwide, but specifically towards newly-industrialized countries such as India. They are focused on trying to attract foreign investments, due to the lack of domestic savings, and thus as a stable means of foreign capital inflow. In addition to this, there are multiple, other positive effects on macroeconomic variables, such as productivity, production capacity, level of employment, factor prices, technological know-how, and overall economic growth. Corporations and firms, on the other hand, internationalize towards developing countries in an effort to seek and reap the multiple benefits found in these destination countries. Such benefits include reduced production costs, given by lower relative wages and country endowment of resources, as well as market expansion possibilities. The scope of their needs is determined by the type of strategy adopted, which can distinguish between market seeking, resource seeking, efficiency seeking and strategic investments. The Indian market offers relatively low-cost labor, an enormous pool of possible consumers and many other benefits. When time is taken to fully understand the characteristics of the country and its business culture one can extract the huge rewards. If on the other hand, investors make quick decisions and do not fully review all aspects which might create a risk, the investment may result in serious and substantial failures with large losses of capital. As in many developing countries, Indian laws and regulations are constantly evolving. These laws reflect the political compromise needed to balance the complex and conflicting demands of multiple constituencies. The result of this compromise is a high turnover of laws and regulations which, among other things, are passed through a trial and error basis. This entails that ineffective and inefficient laws may be passed and then substituted once they are tested as not working, having unintended consequences and being impracticable. The constant change and poor formulation leave, at times, room for interpretation especially by lower levels of government officials leading in turn to the possibility of corruptions.This, together with the inefficient judiciary, due not to its quality, but to the extensive time in court cases as well as non-streamlined and improperly implemented process and regulations, leads the investor to a perceive low protection and high risk throughout many phases of the investment. The book offers a useful overview for foreign enterprises on the complex, sometimes intricate process of investing in India, assisting them in gathering great opportunities through overtaking challenges.

The Global Investment Competitiveness Report 2019-2020 provides novel analytical insights, empirical evidence, and actionable recommendations for governments seeking to enhance investor confidence in times of uncertainty. The report's findings and policy recommendations are organized around "3 ICs" - they provide guidance to governments on how to increase investments' contributions to their country's development, enhance investor confidence, and foster their economies' investment competitiveness. The report presents results of a new survey of more than 2,400 business executives representing FDI in 10 large developing countries: Brazil, China, India, Indonesia, Malaysia, Mexico, Nigeria, Thailand, Turkey, and Vietnam. The results show that over half of surveyed foreign businesses have already been adversely affected by policy uncertainty, experiencing a decrease in employment, firm productivity, or investment. Foreign investors report that supporting political environments, stable macroeconomic conditions, and conducive regulatory regimes are their top three investment decision factors. Moreover, the report's new global database of regulatory risk shows that predictability and transparency increase investor confidence and FDI flows. The report also assesses the impact of FD! on poverty, inequality, employment, and firm performance using evidence from various countries. It shows that FDI in developing countries yields benefits to their firms and citizens-including more and better-paid jobs-but governments need to be vigilant about possible adverse consequences on income distribution. The report is organized in S chapters: Chapter 1 presents the results of the foreign investor survey. Chapter 2 explores the differential performance and development impact of greenfield FDI, local firms acquired by multinational corporations {i.e. brownfield FDI), and domestically-owned firms using evidence from six countries. Chapter 3 assesses the impact of FDI on poverty, inequality, employment and wages, using case study evidence from Ethiopia, Turkey and Vietnam. Chapter 4 presents a new framework to measure FDI regulatory risk that is linked to specific legal and regulatory measures. Chapter S focuses on factors for increasing the effectiveness of investment promotion agencies.

This study analyzes the characteristics, motivations, strategies, and needs of FDI from emerging markets. It draws from a survey of investors and potential investors in Brazil, India, South Korea, and South Africa.

During the 1990s, the governments of South Asian countries acted as ‘facilitators’ to attract FDI. As a result, the inflow of FDI increased. However, to become an attractive FDI destination as China, Singapore, or Brazil, South Asia has to improve the local conditions of doing business. This book, based on research that blends theory, empirical evidence, and policy, asks and attempts to answer a few core questions relevant to FDI policy in South Asian countries: Which major reforms have succeeded? What are the factors that influence FDI inflows? What has been the impact of FDI on macroeconomic performance? Which policy priorities/reforms needed to boost FDI are pending? These questions and answers should interest policy makers, academics, and all those interested in FDI in the South Asian region and in India, Pakistan, Bangladesh, Sri Lanka and Pakistan.

Drawing on good practices from OECD and non-OECD countries, the Framework proposes a set of questions for governments to consider in ten policy fields as critically important for the quality of a country’s environment for investment.

This book looks at the evidence and assesses the impact of competition among governments to attract FDI. It finds little evidence directly to support fears of a "global race to the bottom" in labour and environmental standards.

"The book investigates foreign direct investment (FDI) strategies in four important emerging economies: Egypt, India, South Africa and Vietnam. These countries liberalized their economies in the 1990s with the intention of attracting greater FDI inflows. This book assesses whether they have been successful in achieving this goal. The authors adopt a comparative perspective and use a large enterprise survey plus three individual case studies in each country. They investigate the strategies of foreign direct investors focusing on the relationship between the investment climate, the mode of entry (acquisition, greenfield or joint venture), company performance, and spillovers to the host economy. The book outlines how the interactions between international businesses and the local policy environment influence the entry strategies of firms. Academics and researchers with an interest in international business, emerging markets, economic development and strategic management will find this book informative and insightful."--BOOK JACKET.

In the 21st century, one of the most noteworthy changes in the human rights debate relates to the increased recognition of the link between business and human rights. This book is an attempt to explore this relationship and also to look into the obligations of the state and transnational corporations in the promotion of human rights. Business and Human Rights discusses how globalization has affected individuals in the enjoyment of their human rights in relation to the activities of corporations. The book addresses what additional steps the states should take to protect against human rights abuses by business enterprises that are owned or controlled by the state. Moreover, it covers, in depth, the role and contribution of the United Nations in business and human rights. The book includes several real-life case studies to help the readers understand the topics discussed.