International Research Journal of Commerce , Arts and Science

 ( Online- ISSN 2319 - 9202 )     New DOI : 10.32804/CASIRJ

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IMPACT OF FDI ON SMALL SCALE INDUSTRIES

    1 Author(s):  ASHOK KUMAR

Vol -  6, Issue- 5 ,         Page(s) : 180 - 184  (2015 ) DOI : https://doi.org/10.32804/CASIRJ

Abstract

FDI is a major source of external finance which means that countries with limited amounts of capital can receive finance beyond national borders from wealthier countries. An increase in FDI may be associated with improved economic growth due to the influx of capital and increased tax revenues for the host country. Host countries often try to channel FDI investment into new infrastructure and other projects to boost development. Greater competition from new companies can lead to productivity gains and greater efficiency in the host country and it has been suggested that the application of a foreign entity’s policies to a domestic subsidiary may improve corporate governance standards.

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