JsjbhhhwhbbbvvbbhehhehejejjwhjjwjRALI.pptx

Zbsbhwhwhk

1. FDI AND FII LAVANYA MURALI

2. MEANING OF FDI FDI stands for Foreign Direct Investment. It refers to an investment made by a firm or individual in one country into business interests located in another country. Typically, FDI occurs when an investor establishes foreign business operations or acquires foreign business assets, including establishing ownership or controlling interest in a foreign company.

3. FEATURES OF FDI Equity Capital Long-Term Investment Control and Management Transfer of Resources Profit Repatriation Risk Sharing Market Access Job Creation Economic Growth Bilateral Agreements

4. TYPES OF FDI Horizontal FDI Vertical FDI Conglomerate FDI Platform FDI Inward FDI Outward FDI Greenfield Investment Brownfield Investment Strategic Investment Financial Investment

5. ADVANTAGES OF FDI Capital Inflow Technology Transfer Employment Opportunities Skill Development Market Access Economic Growth Infrastructure Development Balancing Payments Diversification of Industries Stimulating Domestic Investment Enhanced Competitiveness

6. DISADVANTAGES OF FDI Dependency on Foreign Investors Risk of Capital Flight Loss of Sovereignty Excessive Repatriation of Profits Competition with Domestic Firms Environmental Degradation Labor Exploitation Economic Imbalances Negative Impact on Culture Financial Instability Tax Avoidance

7. EXAMPLES OF FDI Toyota establishing manufacturing plants in the United States. Google investing in data centers and research facilities in various countries. Walmart acquiring a majority stake in Flipkart, an Indian e-commerce company. ExxonMobil investing in offshore oil exploration and production projects. J.P. Morgan Chase acquiring a stake in a Chinese securities firm. Marriott International expanding its hotel chain in emerging markets. Samsung building manufacturing facilities in Vietnam. Pfizer investing in research and development facilities in Ireland. Chinese companies investing in infrastructure projects in Africa. Blackstone Group acquiring commercial real estate properties in major cities globally.

8. MEANING OF FII FII stands for Foreign Institutional Investor. It refers to institutional investors, such as mutual funds, pension funds, insurance companies, and hedge funds, that invest in the financial markets of a country other than their own. FIIs participate in the buying and selling of securities such as stocks, bonds, and other financial instruments in foreign markets. Their investments can have a significant impact on the liquidity and stability of the financial markets they operate in. FIIs play a crucial role in channeling foreign capital into domestic markets, contributing to economic growth and development.

9. FEATURES OF FII Institutional Investors Cross-Border Investment Portfolio Investment Market Liquidity Risk Management Regulatory Compliance Market Influence Information Access Long-Term Investment Foreign Exchange Impact

10. TYPES OF FII Mutual Funds Pension Funds Insurance Companies Hedge Funds Exchange-Traded Funds (ETFs) Sovereign Wealth Funds (SWFs) Endowment Funds Investment Trusts Bank-Owned Funds Private Equity Funds

11. ADVANTAGES OF FII Increased Market Liquidity Diversification of Investment Access to Expertise Capital Inflow Market Development Price Efficiency Technology and Innovation Foreign Exchange Reserves Risk Management Competition and Efficiency

12. DISADVANTAGES OF FII Market Volatility Herding Behavior Speculative Trading Capital Flight Risk Overreliance on External Financing Asset Price Distortions Disconnect from Economic Fundamentals Regulatory Arbitrage Exacerbation of Inequality Lack of Long-Term Commitment

13. EXAMPLES OF FII Investment management firms purchasing shares of multinational corporations listed on foreign stock exchanges. Pension funds allocating a portion of their investment portfolios to international bonds and equities. Sovereign wealth funds investing in foreign government securities and infrastructure projects. Hedge funds trading currencies and derivatives in global financial markets. Insurance companies diversifying their investment portfolios by investing in foreign real estate and stocks. Mutual funds purchasing shares of emerging market companies listed on international stock exchanges. Endowment funds acquiring stakes in private companies through venture capital investments in foreign markets. Exchange-traded funds (ETFs) tracking foreign stock indices and commodities for retail investors. Investment trusts managing portfolios of international stocks and bonds for individual investors. Private equity firms acquiring controlling stakes in overseas companies and participating in buyouts and mergers.

14. DIFFERENECE BETWEEN FDI AND FII FDI Involves investment in physical assets or ownership of businesses. FDI typically involves acquiring a significant ownership stake, often exceeding 10% of the company's equity. Generally characterized by long-term investment horizons. Often aimed at establishing operations, expanding business, or acquiring assets in a foreign country. Fosters job creation, technology transfer, and infrastructure development in the host country. Subject to regulations governing foreign investment, including restrictions on ownership and sector-specific regulations FII Involves investment in financial assets such as stocks, bonds, etc. FIIs do not seek to acquire significant ownership stakes or control over the invested companies. Can be short-term or long-term, depending on investor strategy. Primarily focused on earning returns through trading and portfolio investments. Contributes to market liquidity, price discovery, and capital formation. Subject to regulations related to investment limits, registration, and compliance.

15. THANK YOU