Analyzing the Effects of FDI and Consumer Markets on Business Success

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GLOBALISATION

TABLE OF CONTENT
• FOREIGN DIRECT INVESTMENT
• IMPORTANCE OF FDI’s IN BUSINESS ACTIVITIES
• IMPLICATION OF FDI’s IN BUSINESS ACTIVITIES

FORIEGN DIRECT
INVESTMENT
According to Chen (2019), Foreign direct investment are those
investments that are done by the company in one country in
respect to the business that is situated in another country. These
investments are done by the company to gain the assets of the
foreign businesses including ownership and with the motive of
maintaining a long term relationship.

IMPORTANCE OF FDI’S IN BUSINESS
ACTIVITIES
IMPORTANCE OF FDI’s
• Increase in economic growth and employment.
• Helps in the development of backward areas.
• Creating competitive market.
• Development in human resource and availing the benefit of
finance and technology.

IMPLICATION OF FOREIGN DIRECT INVESTMENT
• Foreign direct investment helps the companies in operating,
investing and financing activities since the growth of firm is
completely dependent on the competition prevailing in the
market.
• With the coming up of various foreign industries, the
budgeting, marketing, sales, supply chain and customers
services all are affected leading to growth and profit of the
company.

TABLE OF CONTENT
• CONSUMER MARKET
• IMPORTANCE OF GROWTH IN CONSUMER MARKET ON
BUSINESS ACTIVITIES
• IMPLICATION OF GROWTH IN CONSUMER MARKET ON
BUSINESS ACTIVITIES

CONSUMER MARKET
According to Schofield (2019), Consumer market includes
consumer products, beverages, retail products and products used
in transportation. Industries working in the consumer market
mainly deals with loyalty of a brand and uncertainty that the
product and services have in future.

IMPORTANCE OF GROWTH IN CONSUMER MARKET ON
BUSINESS ACTIVITIES
• Creates brand loyalty.
• Keeps firm competitive in the market.
• Increases the demand in the market.
• Helps in knowing the decisions of the consumer for the
product.
• Increases the sale of the products.

IMPLICATION OF GROWTH IN CONSUMER MARKET ON
BUSINESS ACTVITIES
• Financing helps the consumer market to expand and reach
wider area with new market segment.
• Budget are also prepared by the company keeping in mind the
demand of product in the market.
• Marketing plans are formulated by the company and efforts
are made to make the consumers aware about the brand.
• Maintaining healthy relationship with the consumers also
helps the company to grow and develop

REFERENCES
• Padia, 2019. Advantages of foreign direct investment (Online)
Available at
https://www.investindia.gov.in/team-india-blogs/advantages-foreign-
direct-investment
• Chen, 2019. Foreign Direct Investment (Online) Available at
https://www.investopedia.com/terms/f/fdi.asp (Accessed on 4th July
2019).
• TE, 2019. Foreign direct investment (Online) Available at
https://www.economist.com/economic-and-financial-indicators/2011
/01/20/foreign-direct-investment
(Accessed on 3rd July 2019). Paul, 2019.
• FDI (Online) Available at
https://www.atkearney.com/foreign-direct-investment-confidence-ind
ex/2019-full-report
(Accessed on 10th July 2019).
• Schofield, 2019. What is consumer market? (Online) Available at
https://study.com/academy/lesson/what-is-consumer-market-definiti