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Direct Foreign Investment Decision Proposal: GM

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Direct Foreign Investment Decision Proposal

Prepare a proposal in which you select the optimal financing and investment strategy for your scenario. My scenerio is a manufacturing organization considering expansion to India or Brazil. The organization is GM.

Include the following information in your proposal:

o Identify which country you chose and why.

o Identify foreign exchange rate data.

o Use foreign exchange and cost of capital data to determine appropriate capital sources.

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Response provides guidance regarding Direct Foreign Investment Decision Proposal: GM in India or Brazil

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Direct Foreign Investment Decision Proposal

Prepare a proposal in which you select the optimal financing and investment strategy for your scenario. My scenario is a manufacturing organization considering expansion to India or Brazil. The organization is GM.

Include the following information in your proposal:

? Identify which country you chose and why.

I will choose India as a country for FDI for GM. As per Wikipedia, "India is a republic consisting of 28 states and seven union territories with a parliamentary system of democracy. It has the world's twelfth largest economy at market exchange rates and the fourth largest in purchasing power. "As per kwintessential, the different states of India have different official languages, some of them not recognized by the central government. There is caste system prevalent in India and relationship involves hierarchies.

Moreover Indians are always conscious of social order and their status relative to other people, be they family, friends, or strangers. Indians are group oriented and have strong family values. Moreover India has become information technology hub due to its vast talent pool. The workforce in India is young and increasingly become professional. (sourcingmag, 2009)

This indicates that the purchasing power of youth in India is increasing. Moreover if we analyze the list of the top ten countries according to population size:

Key findings:

If we see in the following table as of 2005, China and India are top two countries in the world as per the size of population. Moreover China is number one in the table and at number 10 Japan fills the position. There is another table which gives the forecast of size of population as of 2050. In that India will be number one followed by China.

http://www.nationmaster.com/graph/peo_pop_gro_rat-people-population-growth-rate

Potential return of FDI of the top country on the list

As per the report China and India continue to be the top two countries of the FDI Index. China is first for the fifth year in succession. India tops the list of positive investment outlook amongst all the destinations. The other ...

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