what are the advantages to foreign companies in selling of production in India????
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Hi!
Here's your answer>>>>>>
1) Foreign companies helps to increase the Indian market.
2)We get more and more choices in Good qualities of items.
3)If there will be more and more companies in India than it will increase competition between them and eventually results in falling of prices of different commodities in India.
Hope it helps.
Please mark it as brainliest.........
Here's your answer>>>>>>
1) Foreign companies helps to increase the Indian market.
2)We get more and more choices in Good qualities of items.
3)If there will be more and more companies in India than it will increase competition between them and eventually results in falling of prices of different commodities in India.
Hope it helps.
Please mark it as brainliest.........
PrincessNancy:
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i am new in brainly.com
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When you will get two answers or if don't than after some fays you will get notification that mark any of the answer of the following question as brainliest
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Answered by
1
Hi shalini
Most developing countries vie with one another to attract foreign investment. They offer all sorts of tax concessions, free industrial plots of land, and power at special rates. They employ an army of smiling liaison officers to give V.I.P. treatment to every visiting businessman. Some countries even add thoughtful touches like a small gift for the businessman's wife and a juicy bone for his pet dog.
India has stood aloof from this scramble for foreign capital. Far from offering special incentives, it puts a formidable array of obstacles and disincentives in the way of foreign companies. They are banned from entering the vast majority of industries, and can invest only in export-oriented projects or industries involving very sophisticated technology. They have to accept an Indian shareholding of at least 26 per cent, and the avowed objective of the government is to increase the Indian shareholding ultimately to 60 per cent, thus converting the foreign company into a minority partner. The rate of corporate tax is much higher than in most developing nations.
In these circumstances it is hardly surprising that in recent years the inflow of foreign investment into India has been reduced to a trickle. This suits the government admirably, since it believes that it is worth inviting foreign businessmen only in areas yielding very high economic benefits, such as the export oriented and high technology industries. Thus the inflow of alien capital is small but its quality is very high. This stress on quality at the cost of quantity is regarded as foolish by many countries, but has attracted the favourable attention of a growing body of economists.
What are the advantages of inviting foreign investment? First, it adds to the limited amount of money available for investment in a country, and this additional investment results in more jobs and production. Secondly, it brings in new technologies and skills, including managerial skills. Thirdly, foreign capital adds to the scarce foreign exchange reserves of the recipient country.
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Most developing countries vie with one another to attract foreign investment. They offer all sorts of tax concessions, free industrial plots of land, and power at special rates. They employ an army of smiling liaison officers to give V.I.P. treatment to every visiting businessman. Some countries even add thoughtful touches like a small gift for the businessman's wife and a juicy bone for his pet dog.
India has stood aloof from this scramble for foreign capital. Far from offering special incentives, it puts a formidable array of obstacles and disincentives in the way of foreign companies. They are banned from entering the vast majority of industries, and can invest only in export-oriented projects or industries involving very sophisticated technology. They have to accept an Indian shareholding of at least 26 per cent, and the avowed objective of the government is to increase the Indian shareholding ultimately to 60 per cent, thus converting the foreign company into a minority partner. The rate of corporate tax is much higher than in most developing nations.
In these circumstances it is hardly surprising that in recent years the inflow of foreign investment into India has been reduced to a trickle. This suits the government admirably, since it believes that it is worth inviting foreign businessmen only in areas yielding very high economic benefits, such as the export oriented and high technology industries. Thus the inflow of alien capital is small but its quality is very high. This stress on quality at the cost of quantity is regarded as foolish by many countries, but has attracted the favourable attention of a growing body of economists.
What are the advantages of inviting foreign investment? First, it adds to the limited amount of money available for investment in a country, and this additional investment results in more jobs and production. Secondly, it brings in new technologies and skills, including managerial skills. Thirdly, foreign capital adds to the scarce foreign exchange reserves of the recipient country.
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PLZ MARK IT AS THE BRAINLIEST ANSWER
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