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When considering the type of investment appropriate for entering a foreign country (joint venture, direct investment, licensing, for example), it is critical to consider the political stability of the target nation, the demographics of the country, and the economic and legal environment. Some nations have significant restrictions on foreign direct investment while others invite the inflow of economic activity such investment brings. This research considers the environment associated with India and how best to invest in that nation.
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Balance of Payments
India had a deficit of $3.6 billion in balance of payments for 1991-1992. The United States is the principal source of imports to India, while Russia was the principal destination for exports during 1990-1991…