GLOBALISATION OF BUSINESS - Syed Sajid (reading e books .txt) 📗

a given period. Direct investment excludes investment through purchase of shares
Foreign direct investment (FDI) rules in agriculture may be relaxed, albeit only in non-farm wasteland and degraded lands.
The Union ministry of agriculture and the department of land resources under the ministry of rural development have given "in principle approval" to a proposal of the Department of Industrial Policy and Promotion (DIPP) to invite FDI for developing non-arable land through better technology into fertile and cultivable land.
Currently FDI in agriculture is prohibited, barring allied sectors like horticultre, floriculture, pisciculture, animal husbandry, aquaculture and development of seeds, vegetables and mushrooms under controlled conditions..
The proposal mooted by DIPP, the foreign investment policy-making body under the ministry of commerce, aims at coping with the problem of limited arable land and food shortage in the country. Under this proposal to be classified as investment in land and agriculture, a foreign company could invest through an Indian company under a joint venture or technical tie-up for imparting the necessary technology for converting waste land into fertile land. "The investments could be in drylands like deserts or marshy land or salty and barren land,” said an official.
The department of agriculture has stated in its comments to DIPP that the nature of technology to be used, its proven track record in other countries and time line of the project would be essential before drawing up the final blueprint for the proposal. And, if any land happens to be owned by a farmer or individual or an entity, he or it should be treated as a stakeholder in the final proposal or venture.
It has also suggested DIPP look into ownership issues, as to whether any public sector undertaking, through the department of land resources or agriculture or relevant state government, may be made a partner in the project to take care of public welfare. “In what form the FDI comes, whether in a new company or existing company and whether the operations of the existing company supplements agriculture is to be examined before inviting FDI,” said an official source.
FDI is a measure of foreign ownership of productive assets, such as factories, mines and land. Increasing foreign investment can be used as one measure of growing economic globalization. The figure below shows net inflows of foreign direct investment in the United States. The largest flows of foreign investment occur between the industrialized countries (North America, Western Europe andJapan). But flows to non-industrialized countries are increasing sharply.
US International Direct Investment Flows:
Period FDI Outflow FDI Inflows Net
1960-69 $ 42.18 bn $ 5.13 bn + $ 37.04 bn
1970-79 $ 122.72 bn $ 40.79 bn + $ 81.93 bn
1980-89 $ 206.27 bn $ 329.23 bn - $ 122.96 bn
1990-99 $ 950.47 bn $ 907.34 bn + $ 43.13 bn
2000-07 $ 1,629.05 bn $ 1,421.31 bn + $ 207.74 bn
Total $ 2,950.69 bn $ 2,703.81 bn + $ 246.88 bn
Types
A foreign direct investor may be classified in any sector of the economy and could be any one of the following:
 an individual;
 a group of related individuals;
 an incorporated or unincorporated entity;
 a public company or private company;
 a group of related enterprises;
 a government body;
 an estate (law), trust or other societal organisation; or
 any combination of the above.

 Methods
The foreign direct investor may acquire voting power of an enterprise in an economy through any of the following methods:
 by incorporating a wholly owned subsidiary or company
 by acquiring shares in an associated enterprise
 through a merger or an acquisition of an unrelated enterprise
 participating in an equity joint venture with another investor or enterprise
Foreign direct investment incentives may take the following forms:[citation needed]
 low corporate tax and income tax rates
 tax holidays
 other types of tax concessions
 preferential tariffs
 special economic zones
 EPZ - Export Processing Zones
 Bonded Warehouses
 Maquiladoras
 investment financial subsidies
 soft loan or loan guarantees
 free land or land subsidies
 relocation & expatriation subsidies
 job training & employment subsidies
 infrastructure subsidies
 R&D support
 derogation from regulations (usually for very large projects)

Global Foreign Direct Investment
UNCTAD said that no significant growth of Global FDI. In 2010 was $1,122 billion and in 2009 was $1.114 billion. The figures was 25 percent below the pre-crisis average between 2005 to 2007.

Foreign direct investment in the United States
"Invest in America" is an initiative of the US Department of Commerce and aimed to promote the arrival of foreign investors to the country.
The “Invest in America” policy is focused on:
 Facilitating investor queries.
 Carrying out maneuvers to aid foreign investors.
 Provide support both at local and state levels.
 Address concerns related to the business environment by helping as an ombudsman in Washington DC for the international venture community.
 Offering policy guidelines and helping getting access to the legal system.
The United States is the world’s largest recipient of FDI. More than $325.3 billion in FDI flowed into the United States in 2008, which is a 37 percent increase from 2007. The $2.1 trillion stock of FDI in the United States at the end of 2008 is the equivalent of approximately 16 percent of U.S. gross domestic product (GDP).55
Benefits of FDI in America: In the last 6 years, over 4000 new projects and 630,000 new jobs have been created by foreign companies, resulting in close to $314 billion in investment.Unarguably, US affiliates of foreign companies have a history of paying higher wages than US corporations. Foreign companies have in the past supported an annual US payroll of $364 billion with an average annual compensation of $68,000 per employee.
Increased US exports through the use of multinational distribution networks. FDI has resulted in 30% of jobs for Americans in the manufacturing sector, which accounts for 12% of all manufacturing jobs in the US.
Affiliates of foreign corporations spent more than $34 billion on research and development in 2006 and continue to support many national projects. Inward FDI has led to higher productivity through increased capital, which in turn has led to high living standards.
Foreign direct investment in China
Starting from a baseline of less than $19 billion just 20 years ago, FDI in China has grown to over $300 billion in the first 10 years. China has continued its massive growth and is the leader among all developing nations in terms of FDI Even though there was a slight dip in FDI in 2009 as a result of the global slowdown, 2010 has again seen investments increase.
Well established international corporations
In perhaps her first public appearance since becoming chairman of the Financial Accounting Standards Board, last week Leslie Seidman laid out her "three highest priorities" through June 30. Remember that date. Not long after that, the Securities and Exchange Commission could reveal whether it intends to require all U.S. public companies to incorporate international financial reporting standards into the current U.S. financial reporting system.
Speaking on a FASB Webcast, Seidman, who became the top U.S. accounting standard-setter on December 23, said the board's main tasks for the first two quarters of 2011 are to achieve, along with the International Accounting Standards Board, melded standards in three areas: financial instruments, revenue recognition, and leasing.
target date for achieving convergence on those three matters would be June 30. "To me, the June 2011 target date signals our strong commitment to work as hard as we can to develop final standards on these projects as efficiently as we possibly can," she said.
But since the projects "represent key issues for many companies and nonprofit organizations, I want to underscore that we want these standards to provide useful information and to be understandable and implementable at a reasonable cost," she added. "Let me assure you, if it takes a little longer to reach that comfort level, we will take that time."
On Thursday, speaking at a Standard & Poor's conference on hot topics in accounting, IASB member Patricia McConnell expressed relief that FASB wasn't regarding the June deadline as absolutely fixed. "Yes, we do have a target date of June 30. But if we're not done, we're not done," she said, adding that none of the standards would be effective before 2013.

Population ,poverty and health
Poverty is the lack of basic human needs, such as clean water, nutrition, health care, education, clothing and shelter, because of the inability to afford them.[1][2] This is also referred to as absolute poverty or destitution. Relative poverty is the condition of having fewer resources or less income than others within a society or country, or compared to worldwide averages. About 1.7 billion people live in absolute poverty; before the industrial revolution, poverty had mostly been the norm.
Poverty reduction has historically been a result of economic growth as increased levels of production, such as modern industrial technology, made more wealth available for those who were otherwise too poor to afford them.Also, investments in modernizing agriculture and increasing yields is considered the core of the antipoverty effort, given three-quarters of the world's poor are ruralfarmers.
Today, economic liberalization includes extending property rights, especially to land, to the poor, and making financial services, notably savings, accessible.[8][9][10] Inefficient institutions, corruption and political instability can also discourage investment. Aid and government support in health, educationand infrastructure helps growth by increasing human and physical capital.[4]
There many definitions of poverty depending on the context of the situation and the views of the person giving the definition. These are some from various sources including a well-known development scholar. Poverty is also often divided into relative poverty and absolute poverty. Poverty can also be defined as a condition wherein a person cannot satisfy his or her basic needs, namely, food, shelter, clothing, health and education.
Poverty is pronounced deprivation in well-being, and comprises many dimensions. It includes low incomes and the inability to acquire the basic goods and services necessary for survival with dignity. Poverty also encompasses low levels of health and education, poor access to clean water and sanitation, inadequate physical security, lack of voice, and insufficient capacity and opportunity to better one’s life.
—World Bank
Fundamentally, poverty is a denial of choices and opportunities, a violation of human dignity. It means lack of basic capacity to participate effectively in society. It means not having enough to feed and clothe a family, not having a school or clinic to go to, not having the land on which to grow one’s food or a job to earn one’s living, not having access to credit. It means insecurity, powerlessness and exclusion of individuals, households and communities. It means susceptibility to violence, and it often implies living in marginal or fragile environments, without access to clean water or sanitation.
—United Nations
Poverty is a condition characterized by severe deprivation of basic human needs, including food, safe drinking water, sanitation facilities, health, shelter, education and information. It depends not only on income but also on access to services. It includes a lack of income and productive resources to ensure sustainable livelihoods; hunger and malnutrition; ill health; limited or lack of access to education and other basic services; increased morbidity and mortality from illness; homelessness and inadequate housing; unsafe environments and social discrimination and exclusion. It is also characterized by lack of participation in decision making and in civil, social and cultural life. It occurs in all countries: as mass poverty in many developing countries, pockets of poverty amid wealth in developed countries, loss of livelihoods as a result of economic recession, sudden poverty as a result of disaster or conflict, the poverty of low-wage workers, and the utter destitution of people who fall outside family support systems, social institutions and safety nets.
— World Summit on Social Development
To meet nutritional requirements, to escape avoidable disease, to be sheltered, to be clothed, to be able to travel, and to be educated.
—Amartya Sen
People are living in poverty if their income and resources (material, cultural and social) are so inadequate as to preclude them from having a standard of living which is regarded as acceptable by Irish society generally. As a result of inadequate