Foreign Direct Investment's Effect on Banks' Performance
Author : Dr. Sagar Sanwariya
Abstract :
Foreign Direct Investment is an investment between nations in the form of controlling ownership of a firm or organisation. This investment might be inorganic, in which a firm in the target nation is purchased, or organic, in which an existing company in the target country expands its activities. It consists of a number of strategies, such as establishing a partner firm in a foreign nation, purchasing controlling shares in a foreign-based company, or merging or forming a joint venture with a foreign-based company. The advantage of foreign direct investment is that there is control power, according to regulations established by the Organization for Economic Cooperation and Development (OECD). The guidelines establish a 10 percent stake in a foreign-based corporation as the starting point for foreign direct investment. Rather than capitalist economies, it is often a section where brilliant workforce or more normal development chances for financial specialists may be located. It may occasionally contain anything other than investment; it may include managerial structures and the integration of technology. The main component of foreign direct investment is control of a foreign enterprise in a foreign country. The aim of the study to examine the impact of foreign direct investment on the performance of Banks.
Keywords :
Foreign direct investment, banks
