Factors that promoting developing economies

International trade :‡ developing countries today are much more globally integrated by trade. ‡ trade is one of the powerful forces of economic growth Production sharing / global sourcing:‡Different stages of manufacturing a product in different countries. ‡Technical development and designing sharing.

International investment and production:‡ foregien direct investment. ‡ foregien institutional investment. Transplants:‡ production in the foreign market instead of exporting products manufactured in the home country. . Cross border merger and acquisition:‡ companies acquire by other countries and started with new innovation and advanced technology.

. competition will increase than more production will produced. ‡ more rapid and widespread diffusion of technology. ‡ increasing volume and veriety of cross border transaction in goods and services.Liberalization:‡ with economic liberalization investment in the infrastructure and industrial sectors has increased. Globalization:‡ interdependence of countries worldwide .

W. ‡Coca Cola India plans to invest US$ 250 million in India for equipment purchases.L. ‡After buying a 100 per cent stake in OCM Ltd for US$ 35 million. brand promotion and marketing. over the next three years.Impact of US economy on indian economy ‡The Wyndham Group of US will be partnering with Bangalore-based Royal Orchid Hotels to open 10 Ramada hotels across the country. Ross & Co is planning to invest in SpiceJet. The company has already invested over US$ 1 billion in India. ‡Merck & Co aims to become the largest pharmaceutical company in the Indian vaccines market by 2013. .

ultrasound. computed tomography (CT scanners). . is planning to enter the fast-food market in India. after selling aircraft and components to India.and X-rays. ‡Texas Chicken.‡The American aerospace industry will be investing in the development of infrastructure in India's aviation. ‡GE Healthcare is planning to invest US$ 200 million in India¶s rural markets for diagnostics and disease monitoring equipments such as magnetic resonance imaging (MRI). the chicken fast-food brand of the US-based Church's Chicken.

pharmaceuticals. hotels. airlines. auto parts. after IBM. healthcare. . ‡Tata Consultancy Services (TCS) acquired the back-office operations of Citigroup for US$ 505 million to become the second-largest BPO player globally. ‡The Canadian subsidiary of Essar Steel Holdings Ltd is increasing its production to 4 million tonnes (mt) by March 2009 with an investment of 170 million Canadian dollars as capital expenditure. chemicals and information technology.Investments by Indian companies in US span across diverse industrial sectors such as steel.

InterGen. ‡Ranbaxy Fine Chemicals (RFCL) has acquired the US-based speciality chemicals firm. .2 million from Unifi Kinston and plans to invest US$ 215 million in that company.‡Reliance Industries USA has bought a polyester manufacturing facility in North Carolina for about US$ 12. Mallinckrodt Baker. ‡GMR Infrastructure has bought a 50 per cent equity stake in the US-based power utility. in a US$ 340 million deal. for US$ 1.1 billion.

Benefit of fdi BENEFITS TO HOST COUNTRY ‡Resource-transfer effects ‡Employment effects ‡Effects on competition & economic growth BENEFITS TO HOME COUNTRY ‡Inward flow of foreign earnings ‡Employment benefits ‡The reverse resource-transfer effect .

‡The Tata Group has invested in a geothermal energy project in South Australia .7 billion recently in Queensland. ‡Indian investments and presence in some sectors are high. Mining. For example. the Adani Group made a big investment of about $2.India-australia trade:Insurance and banking sectors. Green building.pharma.healthcare.

Haryana. Mitsubishi and Toshiba are expected to be involved in designing and building ecofriendly towns along the DMIC that will pass through Uttar Pradesh. and waste and water recycling systems Top Japanese companies like Hitachi. 24-hour drinking water supply.Japan to help India launch 24 green cities:The cities will include optimised energy supplies. bicycle and walking tracks. Gujarat and Maharashtra. Rajasthan. Delhi. .

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