International Business Test - 3

Foreign investment can be of two types: The two types are: (1) Foreign Portfolio Investment, and (2) Foreign Direct Investment.

Foreign firms entering into joint ventures share the technology and trading secrets with local firms in foreign countries, thus always establishing the risks of such a technology and secrets being disclosed to others apart from the risks associated with entry into foreign markets with dynamic business environments. 

The prime reason behind this radical change is the development of communication, technology, infrastructure etc. Emergence of newer modes of communication and development of faster and more efficient means of transportation have brought nations closer to one another.

Ironically, India holds 2nd rank overall in the world in exporting ayurvedic medicines.Thus, India doesn't import herbal/ayurvedic medicines at all.

Oil and petroleum products

documents required for obtaining a export license:-

• Opening a bank account in any bank authorised by the Reserve Bank of India (RBI) and getting an account number.

• Obtaining Import Export Code (IEC) number from the Directorate General Foreign Trade (DGFT) or Regional Import Export Licensing Authority.

• Registering with appropriate export promotion council.

• Registering with Export Credit and Guarantee Corporation (ECGC) in order to safeguard against risks of non payments.

The degree of mobility of factors of production like labour and capital is relatively more within a country. Domestic markets are relatively more homo- geneous in nature. Business systems and practices are relatively more homogeneous within a country.

The parent company acquires complete control over the foreign company by making 100% investment in the firm and making it wholly owned subsidiary.

The International Bank for Reconstruction and Development (IBRD), and the International Development Association (IDA). The World Bank is a component of the World Bank Group. The World Bank's stated official goal is the reduction of poverty. The International Monetary Fund is an international organization headquartered in Washington, D.C., of "189 countries working to foster global monetary cooperation, secure financial stability,

A portfolio investment is an investment made by an investor who is not involved in the management of a company. This is in contrast to direct investment, which allows an investor to exercise a certain degree of managerial control over a company.