Comparative Analysis of FDI Trends in China and India Essay

Comparative Analysis of FDI Trends in China and India - Essay Example Foreign Direct Investment â€Å"Foreign direct investment is defined as investment by a resident entity in one economy with the objective of obtaining a lasting interest in an enterprise resident in another economy† (OECD, 2010 p88). Foreign direct investment involves a company in one country investing in another entity in another nation to attain a long-term business interest in a business that exists in another economy. In other context, any investing activities that control and manages value creation in other countries is considered a foreign direct investment (Peng, 2011). These entities are known as multinational enterprises and they aim at creating control either through agreement or equity acquisition in a foreign country to help the firm obtain some advantages in the foreign nation (Peng, 2011). â€Å"Foreign direct investment is defined as an investment involving a long-term relationship and reflecting a lasting interest and control by a resident entity in one econom y in an enterprise resident in another economy† (Takamura, 2011 p245). This definition of FDI focuses on the long-term aspect of FDIs. This suggests that these foreign direct investments seek to attain some relationship that would span into the distant future. This is to be separated from short-term interests which might last for three years or less. Such arrangements cannot be classified as FDIs they are more or less some kind of operational agreement and may not qualify to be viewed as an FDI. Examples of FDIs include building production plants to retain control and acquiring a research and development entity in a foreign country (Neuhaus, 2011). Prompters of FDIs, OLI Theory Every business exists to maximise profits by cutting down costs and...This paper clarifies the real reasons behind China's increasing growth in FDI. It examines why China' FDI levels has continued to increase recently. In doing this, there has been undertaken a comparative analysis of China's FDI trends with the Indian FDI trends. In attaining the aim of the research, the objectives were examined, such as review of the vital factors in the movement of FDI in the global context, analysis of the trends in FDI in China, analysis of FDI trends in India and a comparison with China, observation of the differences between the Chinese and Indian situation in that field. In 2010, the World Investment Prospects Survey released by the UN Conference on Trade and Development showed that China is the most popular destination for foreign trade in the World. China increased its FDI by 20% between 2009 and 2010. The main factor that prompted China to become the leading destination for foreign investment was the changes that occurred within the country's national and legal structures. Foreign direct investment involves one entity investing in a business venture in a foreign country. These investments were often meant to promote control in a foreign country in order to attain power and further their interest in a foreign entity. FDI is meant to enable a given business to attain opportunities in foreign countries. Ownership, Locational Advantages and Internalisation form the crux of FDI. Ownership relates to how a business attains control and rights in a foreign business. Locational advantages relate to the ability of a business to take advantage of the local opportunities in a country. Internalisation refers to how a business uses the advantages that the FDI brings to it.

Employee Empowerment in the Workplace Essay Example | Topics and Well Written Essays - 2500 words

Employee Empowerment in the Workplace - Essay Example Empowerment is seen as a process that results in individual employee enjoying autonomy while performing their jobs. This also ensures accountability on their part and thus develops a sense of ownership and increases the sense of fulfillment, while achieving shared organizational goals. Employee Empowerment has grown in importance in public administration. Early concern for employees as human resources and for the social aspects of work grew into the Quality of Work Life movement and such other efforts (e.g., McGregor 1960; Peters and Pierre 2000). The new public administration and the reinventing government movements have emphasized empowering employees (Marini 1971; Osborne and Gaebler 1992; DeWitt et al. 1994). Empowerment has become "one of the buzzwords of the hour" (Clark 1999, 5) (Lacerda Ramos Eduardo 1995). There were instances of efforts in stimulating employee empowerment in the history "Since World War II, the movement for worker empowerment has steadily gained momentum, c ertain countries have attempted (and in some cases sustained) experiments in various cooperative form of empowerment. With state support, the communal kibbutzim of Israel and Palestine have existed for over eight decades. In Latin America, major national trials in workers' ownership were initiated by the government in both Chile and Peru. In Europe, workers' firms came to constitute a major portion of Italian cottage industry, as well as French small- to medium-sized firms - especially in professional services such as printing, architecture, and engineering" (Lacerda Ramos Eduardo 1995). The present project work is an attempt to describe the importance of employee empowerment for employees as well as the organization. It takes an descriptive approach to illustrate the direct relationship between employee empowerment and their contentment and improved performance. Employee Empowerment- Meaning In common parlance, the term 'empowerment' refers to the process of enabling or authorizing an individual to think, behave, take action, and control work and decision making in autonomous ways. It is the state of feeling self-empowered to take control of one's own destiny. In the organizational context, this term is used with the term 'workers' to denote a changed work atmosphere where employees are at liberty to take decisions on their work and given the responsibility for the performance or otherwise at work place. In other words, employee empowerment is the process of granting the authority to employees with non-managerial capabilities to take decision in an autonomous way. Employee involvement and participative management are similar concepts used in the context of empowerment, but are not interchangeable. In fact, empowerment is the act of strengthening an individual's beliefs in his or her sense of effectiveness. In essence, then, empowerment is not simply a set of external act ions; it is a process of changing the internal beliefs of people (Conger and Kanungo, 1988). Individuals believe themselves powerful when they feel they can adequately cope with environmental demands-that is, situations, events, and people they confront. They feel powerless when they are unable to cope with these demands. Conger and Kanungo (1988) were among the first to define psychological empowerment. They described empowerment as