Professional Documents
Culture Documents
MODELS
INVESTMENT MODELS
CHRONICLE
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What is Investment?
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Importance of investment
What is Capital?
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Determinants of Investment
1. Investment is a positive function of income
and inverse function of interest. Thus
Chronicle IAS Academy
Sources of Investment
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Foreign sources
assets.
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1. Traditional society
2. Preconditions for take-off
3. Take-off
4. Drive to maturity
5. Age of High mass consumption
Main features:
1. Rostows stages of economic growth have
assumed vital role of investment for
graduating from one level to the other level.
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Hirschman stressed the fact that underdeveloped economies are called underdeveloped
because they face a lack of resources, maybe not
natural resources, but resources such as skilled
labour and technology. Thus, to hypothesise that
an underdeveloped nation can undertake large
scale investment in many industries of its
economy simultaneously is unrealistic due to the
paucity of resources. Hans Singer asserted that
the balanced growth theory is more applicable
to cure an economy facing a cyclical downswing.
Cyclical downswing is a feature of an advanced
stage of sustained growth rather than of the
vicious cycle of poverty.
Main features of the theory
1. Hirschman contends that deliberate unbalancing of the economy according to the strategy
is the best method of development and if the
economy is to be kept moving ahead, the
task of development policy is to maintain
tension, disproportions and disequilibrium.
2. Balanced growth should not be the goal, but
rather the maintenance of existing imbalances,
which can be seen from profit and losses.
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Main features
List stakeholders.
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Externality effects
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Foreign Investment
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Types
Horizontal FDI arises when a firm duplicates
its home country-based activities at the same
value chain stage in a host country through
FDI.
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Greenfield Investment
Brownfield investment
Turnkey Project
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Conclusion
Chronicle IAS Academy
FOREIGN DIRECT
INVESTMENT
CHRONICLE
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b) Healthcare Sector
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