State, Liberalization, and Investment Question : Issues in Corporate Governance

This paper examines corporate governance issues in a broader perspective in the context of recent Indian government's initiatives to attract FDI.Foreign direct investment (FDI) occurs when a firm undertakes an investment in an overseas enterprise, in which the foreign investor has both the lasting interest and substantial control. FDI implies that that the investor exerts a considerable degree of influence on the management of the overseas enterprise. FDI can be wholly owned (either acquisitions or green field) or joint ventures. With FDI, the investing firm assumes greater risks, compared with licensing or exporting, but has considerably more management control over the overseas operation