Author(s): Ratish C Gupta
Foreign direct investment (FDI) is an investment made by one company in different countries and the investor controlling the ownership over the company purchased. Foreign direct investments has both pros cons. Foreign direct investment helps the host country in increasing the foreign exchange reserves. It helps the host country in easy access to their domestic markets. The access to resources becomes easier, like for the oil companies it becomes easy to develop oil fields, natural resources are being available like metals fossil fuels etc. Due to foreign direct investment cost of production becomes cheaper as the target markets which investor chooses are less restrictive so there are no government interventions. There is more improvement in customer satisfaction is seen as the retail consumers gets a good opportunity to sell different and famous brands and it turned into a huge and pleasant marketing environment. People started focusing on quality over the quantity. It contributes in enhancement of the hospitality and tourism.