Abstract
Foreign direct investment plays a key role in developing nations' economic development. Enhancing foreign economic transactions has become more critical than trade. There are a variety of questions for multinational corporations (MNCs) to address if they plan to invest in other countries, such as why do they invest? How are investments made? Where can I spend it? And how big of an opportunity is that? However in the earlier theories of foreign direct investment, certain questions were dealt with. FDI theories were graded according to microeconomic and macroeconomic viewpoints. An attempt has been made in this paper to research key FDI theories and the relationship between the restrictive index of FDI and FDI is studied by the model of bivariate regression. In India, FDI inflows demonstrate a substantial relationship with the FDI restrictive index. It will have to become more liberal to draw more FDI governments.
Highlights
Multinational corporations have a host of issues to foreign direct investment (FDI) restrictive trade index is analyzed by a answer if they plan to invest in other countries bivariate regression model
As the FDI restrictive index was not available for a few years, so the researcher has calculated missing values by using interpolation and extrapolation techniques. 4.1 FDI Theories The Industrial Organization Hypothesis According to this theory, ownership of proprietary resources and specific capabilities such as differentiated goods, proprietary technologies, management expertise, and greater access to capital and market distortions imposed by government confers a competitive advantage on transnational corporations over indigenous companies in the host country and helps them compensate for the disadvantages of operating in a foreign country. 4.2 The Transaction cost approach R.H
It has been observed that India's FDI inflows are impressive in absolute figures, but India's share is far from satisfactory compared to global flows
Summary
Multinational corporations have a host of issues to FDI restrictive trade index is analyzed by a answer if they plan to invest in other countries bivariate regression model. Such as Why to make investments? Where to spend? And how much risk is in investment?
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