FDI Inflow in India through Manufacturing Sector Essay

FDI Inflow in India through Manufacturing Sector - Essay Example Although India is an under developed country and the government has taken all possible measures to boost up the FDI in all the sectors specially the manufacturing sector. The best econometric model which suits the inflow of FDI's in manufacturing sector is "Time Series Econometric Model". The variables of time series econometric model are stated below: After developing the variables, firstly, we need to assess their properties. Its existence both in long and short term is outlined through the time series analysis. Secondly, one needs to find out those variables which are dependent to each other so as to categorize them either in short term or medium term basis. Moreover, corrective and appropriate measures need to be taken in selecting the variables because only some of these variables produce good results in the long run while the rest do not. The most important thing regarding the application of this model in the manufacturing sector is the data provided. Because in third world or under developed countries like India the manipulation in the data might occur which may create problems in analyzing the real model. The Indian market is very attractive for the foreign investors due to its massive growth in population, economy and various other demographic factors. The Indian government has taken every possible measure to attract the foreign investors and due to this fact stock market of India has attained a new height and its trading volume has grown up exponentially over the last few years, right before the world economy went into a recession (Mehul). In the last 10 years, 27 billion dollars have been injected in the Indian economy, most of which was invested in the manufacturing sector, as availability of cheap labor is one of the key factors that attracts foreign investors. On an average India's overall manufacturing base has attracted investments worth 3.4 billion dollars from 2000 to 2008 in the form of FDI (The Financial Express). There is a huge potential in the manufacturing industry of India and economists estimate more than 12 billion dollars to be injected or invested in India's manufacturing sector in the next 5 years (The Financial Express). Statistics reveal that India is the fourth largest country in terms of FDI but they are still way behind in comparison with China, to refer to the proportions of FDI in India's manufacturing industry is around 37 in comparison to 67 per cent of China (Bhanu 3). Although there is a huge potential and flexibility in both the markets but due to the government policies, tax free zones, availability of cheap labor and resources, China finds its way comfortably at the top (Swapna ). Similarly, another important statistic, is comparison between the manufacturing and the service sector. Service sector in India has only been able to attract $2.34 billion of FDI in the past years. To Examine Motives of FDI Inflow in India Indian economy has made huge impact on the global economy being a huge market

Discouse the way in which recent work in the area related to Essay

Discouse the way in which recent work in the area related to organisational theory have challenged or contributed to conventional understandings of the subject - Essay Example Similarly, Donaldson (1995) supported the general connotation that organizations are established and preserves in order to achieve specific intentions. This goal-oriented or active perspective regarding organization indicates that organizations are meeting places of individual efforts that are more or less synchronized to accomplish objectives that could not be otherwise achieved through solitary action. Nevertheless, aligning the notion of organization with the framework of goal pursuit is to some extent problematic, and there is a large collection of literature that deals with the model of an organizational goal and whether or not the construct carries great weight. For instance, several organizations have within them members or employees who either is not aware with the organization’s mission statement or if they have substantial knowledge of it, they do not essentially support it. An actual example is the goal of most publicly managed corporations in several developed nations which is profit maximization or the capitalization of shareholder value; this corporate objective is in stark contrast with the concerns of the many employees who are more focused on their job security and their comparative influence or prestige than they are about revenues. One instance is a contract manufacturer or employee who is not familiar with the components of corporate accounting and consume s more labour hours because of the common belief that the more hours of work the more income they will earn. However, the target of maximizing overtime was not an organizationally endorsed or even acknowledged goal. Furthermore, the objective of maximizing shareholder value does not produce much dedication or motivation among most organizational contributors (Pfeffer, 1997). On the other hand, Pfeffer and Salancik emphasized that â€Å"organizations are... a process of organizing support