Foreign Direct Investment in India and Indonesia India and Indonesia have had a remarkable growth rate within a period of two years. For India, this saw a reduction in the number of unemployed people hence making a great step on the eradication of poverty. This was a great achievement but it also marked an increase in the rates of environmental degradation and scarcity of natural resources; typically, with the India’s vast economy and multiple dissimilarities in the society, most investors concluded to becoming from both poverty and success. On the other hand, Indonesia’s success also had its defects but the main concerns were the high rates of poverty, limited foreign investment and unemployment; actually, the growth only lasted for a while until the economy was either constant or marginally depreciating.
All the same, this attracted attention of Global bond investors willing to evaluate and venture in either or both of countries’ economies (a favor that the both need); however, currently, most of the investors refrain from doing any investments with Indonesia and opt for India due to its constant growth.
Discussion of Course Concepts There are different perspectives of foreign direct investment across different countries around the world, depending on how much they contribute to the international economy and the various markets. India and Indonesia have developed over the years, generally Asia as a whole, but since challenges began affecting their economy, countries in other parts of the globe are keen on the investments they make. Currently, almost everyone is opting for India, not Indonesia, which is understandable, especially if the argument bases on dissimilarities in the distribution of production influences and their comparative values.
It is a competition between India and Indonesia since both of their markets are in critical situations, following the possible downfall of Asia’s economy, the main reason why parties are still questioning the idea of vetting for India. Evidently, both countries are developed, but today, there are minor differences between Modi and Widodo in terms foreign direct investment inflows and outflows. One thing is for sure, they are not constant. In fact, the only difference is that India’s bonds went up by 0.6%, on the other hand, Indonesia’s bonds might not have went up by the nation’s economy developed, even more than most people expected.
However, different countries have dissimilar perception on matters and there is no positive way to justify why most of the investors are focusing on India; typically, India has its economic blemishes. Relative to the global strategy, there have been advancements in both the direction of investments and the entry modes today; resultantly, there is the possibility of any country entering the global market. This is the reason why bond investors are focusing on India.
Unfortunately, China’s current situation is critical with a probable collapse of its economy and as for Brazil, it is just constant; notably, this are among the good number of economies that global investors are always aiming for. According to statistics, India’s current pace will see its economy’s growth rate increasing because unlike Indonesia, it has marginal control of the problems that were pulling the country down during the hard times i. e. poverty, unemployment. In fact, the only major problem is the environmental degradation, a contributor to its next major problem; the scarcity of resources. However, the global investors are not sure on whether to take on the task because Narendra can increase the figures any time soon; obviously, he has made some of the great achievements and it would be no wonder if new policies on production and marketing surfaced the economy disappointing anyone who has India as their core target.
The global investors are sure that the president is set to make reforms, the worry is how and whom they will affect. Nonetheless, it is an assurance that India’s bonds ought to add value especially with the country’s stock markets setting the bar high and breaking records.
Decisively, it is clear that the investors do not expect a sharp uptick in Indonesian growth anytime soon, because the continued shortage of ventures is a core reason Indonesia remains to execute below its latent GDP rate of between six and seven percent. In fact, according to most analysts the numbers displayed by Indonesia do not express what the country’s economy can achieve if they play their cards right. Generally, India has the forefront with the investors and the analysis makes it clear that the only time global investors would consider Indonesia’s offer is when they make a move to cut subsidies.
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