Globalizing Economies

FDI in India

2008-11-26T04:08:00.000-08:00

Bhaumik, Sumon K., P.L. Beena, Laveesh Bhandari, and Subir Gokarn. 2003. Survey of FDI in India. DRC Working Papers, No. 6: 1-22.

What I did here is widely considered plagiarism. There are no citations in the summary and I often use wording directly from the source material. This piece was meant to be simply a summary and is not, I repeat, is NOT original in any way, shape or form. I take no credit for the contents.

Japanese FDI in India

The country of India has undergone several periods of serious economic reform. In this article, the authors evaluate the reforms of the 1990s and the lasting effects that they have had upon foreign direct investment.

The reforms of the 1990s represent the Indian government’s first persistent attempt at re-creating the economy. The article puts forth that the reforms made investment in India by multi-national corporations (MNCs) much easier by allowing MNCs in many sectors to share in the ownership stake of the company. In some cases, the MNCs may own as much as 100% of the foreign sectors. MNCs may not, however, invest in the defense, railway transport, or atomic energy industries and are somewhat limited in their ability to share in ownership of companies in the media sector.

The article then begins an analysis of the types of companies which invest in India and the important aspects there in. Highlights:

· Who’s Investing?

o 29% of the MNCs come from North America

§ US companies have primarily invested in the IT and Financial Services sectors

o 18% of the MNCs come from Japan and East Asia

§ Japanese companies generally tend to invest in the “old economy” machines, equipment sector, and in the “new economy” IT sector.

· How do they do it?

o Most of the entries (46%) are through Greenfield, which is consistent with the theory that high technology companies want to keep their knowledge as confined as possible

· Why do they do it?

o 53% of the MNCs are interested in only one activity or product in the region.

o 57% of the MNCs entering did not have previous experience entering into other emerging markets.

o As in 2003, over 60% of IT services, 30% of financial and business services and between 10% - 20% of all other sector outputs were exported.

· Labour and Input Development

o Across the board the MNCs felt that there had been an improvement in the local labour force. The scores averaged a 0.40 increase on a 5-point scale.

o Local inputs also enjoyed a boost in performance recognition across the board, the highest being a 0.90 increase in IT and Telecom Services.

· Business Environment

o MNCs from North America noticed the greatest improvement in the legal-institutional environment whereas firms from Europe and East Asia had lesser experiences.

o MNCs from North America noticed the improvement in the honoring of visas and work permits whereas Japanese firms enjoyed more FDI friendly policies.

· Product Markets

o Prima facie evidence shows that FDI in India has increased the quality of the products rather than the managerial abilities of the labour force.

· How is India Used?

o Only 15% of MNC affiliates spend more than 4% of their revenue on training. Thus it can be assumed that the bulk of the large MNCs use India as a manufacturing base.

o Not surprisingly, those MNCs which did not provide training were the most unhappy with their performance

As of 2003, FDI inflow has greatly improved into India. However, it hovered around the very low USD 4 billion. It is widely believed that FDI inflow was stemmed because of bureaucratic issues and instability towards FDI friendly government policies. On average, those MNCs that invested in the Indian economy early have been satisfied with the results. Only 16% of the surveyed MNCs are unsatisfied. Still, FDI in India remains a bit mixed characterized by “cautious optimism.”

Us.

2008-11-16T03:08:00.000-08:00

Ta-da!!!

Cheers to the beginning of a wonderful blog and tons of fun blog entries to come!!

JM and I, the two BRICs RT Leaders, seem to find each other either online every day or at least every other day,

and we’ve been having many many delightfully charming and fun Skype/Gmail-chat conversations. (as you can probably see from JM’s previous entry)

I guess I’ll further the introductions of ourselves that JM began in the previous entry by sharing with you a little bit more of our craziness.

I’d like to make 2 points about ourselves today

(I’m a debater in my life outside of JASC… once a debater, we’re cursed with the spell of often needing to clarify what points we’re trying to make)

1. We think up of (random/crazy/weird/amazing… insert adjective of choice) things… and make them happen

2. We have a bit of friendly competition going between us

But unlike debate, I don’t think I’ll need to add on many words or further explanation….

Our conversation log basically speaks for itself.

So here we go:

POINT 1. Team JMD=YT makes things happen.

JM messages me with what was supposed to be a serious, and short, 3 line confirmation about a JASC project we’re working on…

Let me just say that it turned out to be neither.

Somehow, the conversation turns to “Waltzing Matilda,”

the national song of Australia.

(Oh wait, oh yeah it wasn’t even the flow of the conversation - JM just suddenly started singing it.)

Jon-Michael: Once a jolly swagman set beside a billabong
under the shade of a koolibah tree
and he sang as he sat and rested while his billy boiled
Yuri: waltzing matilda!
Jon-Michael: Will you come a-waltzing matilda with me?
I'm surprised you recognized.
Yuri: walzing matilda, waltzing matilda, you'll come a waltzing matilda with meeee... that song could have a lot of different uses

Jon-Michael: Indeed.
Yuri: it could be slowed down and sung in a whispering kind of voice and used in a horror
it would be scary
Jon-Michael: ... WTF.

5 minutes later,

JM messages me again… with this.

Walzing Matilda

Yuri：　whoa dude this is creepy
Jon-Michael: Hey, you came up with it.
I just made it happen
Yuri: ewwwww it reminds me of THE RING ahhhhhhh
Jon-Michael: You're gonna die in WALTZING MATILDA!

POINT 2. WE’RE COMPETITIVE.

Yuri: i havent seen movies in forevahhh

Jon-Michael: PS, we should have movie night in Osaka.
Yuri: PPS, or in Tokyo.
Jon-Michael: PPPS, no, Osaka.
Yuri: PPPPS, bet Tokyo has more movie rental places
Jon-Michael: PPPPPS, I know of a rental place on my walk home

Yuri: PPPPPPS, as do i. PPPPPPPS, ITS ON

Jon-Michael: PPPPPPPPS, Wait, what?
Yuri: PPPPPPPPPS, we are dorks
Jon-Michael: Always have been, my dear

Jon-Michael: I am pretty postive that I got the best RT partner.
Yuri：　pretty?
Jon-Michael: pretty meaning, absolutely sure of it.
Yuri: I am 150% positive that Ive got the best RT partner
hows THAT
Jon-Michael: Not as good as the 300% that I am.
Yuri: --> 450%
Jon-Michael: tcha, my assuredness is OVER 9000!!!(%)

Yuri: hahahahaha WELL MINE is like zimbabwe's inflation rate
Jon-Michael: (or America's)
Yuri: haha well zimbabwes is like 250million(%) i wonder what life would be like...youd have like a room full of money and it wouldnt mean anything

Jon-Michael: Oh, you want a bowl of rice? That's $5,000,000

... In case you're wondering...

Of course, as RT leaders, we also talk about the course of our RT too.

Jon-Michael: (we should probably just start a separate blog NOT about RT... but about our craziness...)

I'm pretty sure we would have plenty of entries
Yuri: if we keep on going like this on our RT blog one of 2 things will happen
1. noone will apply for the BRICs RT
2. BRICs RT will be the most popular RT in history
Jon-Michael: (in the case of 2, all we will do is talk about crazy stuff and final forum will be a slowed down horror movie about zimbabwean inflation and waltzing matilda)
(and onigiri filling)

... horror movie? walzing matilda? zimbabwe?

... BRICs???

maybe our RT will be all of the above.

In any case, I know for sure,

that it will be absolutely amazing.

Hello, World!

2008-11-02T07:00:00.000-08:00

Rather than give you all an introduction to who we are, I thought it would be funny if Yuri and I showcased one of our conversations here for you all... It really grabs our sense of humor and lovingness (or something). Enjoy!

竹内友理: haha ooooo
so come to tokyo for 20 days!!!
:)

Jon-Michael: I think that missing 20 consecutive classes might be a bit difficult to catch up on...

竹内友理: we can homeschool in tokyo
:P

Jon-Michael: Oh, I appreciate it. I would probably flourish under your tutelage...
Lesson 1: How to dress like a girl for the next JASC
*shakes head*

竹内友理: you did it pretty well during 60th
i dont know if you need my help with that one

Jon-Michael: Guess I don't need the tutoring?
Gee, your vote of confidence is overwhelming me.

竹内友理: hehe
and now i feel unneeded
well maybe we can help you dress like one of those gwen stefani harajuku girls... although ill probably need help tutoring that one

Jon-Michael: Oh, no, Yuri Takeuchi... Quite the opposite. You are the ying to my yang, the delilah to my samson, the bonnie to my clyde. I quite need you.

竹内友理: its annoying how everyone in the US thinks girls in tokyo dress like that
that is good to know
salt to pepper, ketchup to mustard... soysauce to sushi...

Jon-Michael: Scatch the mustard part-- I don't like mustard.

竹内友理: ME NEITHER
cream cheese to bagel

Jon-Michael: See? A perfect match.

竹内友理: and lox
mustard makes everything taste weird

Jon-Michael: And smells funny?

竹内友理: YESS

Jon-Michael: A dream deal.
You are the onigiri to my (insert onigiri innard)

竹内友理: hahahaha. good one