CHAPTER-1INTRODUCTION1.1 THEORETICAL FRAMEWORK Foreign Direct Investment (FDI) It is a direct investment in production or business in one country by a company in another country , or by purchasing a company in the target country. country or expanding the operations of an existing business in that country. This means that when one country invests money in the other country for business purposes or to earn more. Advantages of FDI:- (a) Improves the foreign exchange market of the country (b) Increase in employment and production will also increase (c) Helps in attracting new capital (d) Helps in transfer of new technologies, management skills and intellectual property (e) Increases competition with the country Disadvantages of FDI: - (a) Risk for domestic companies that the ownership goes to the foreign company. (b) Small businesses fear that they will not be able to compete with large, world-class companies and will go out of business. (c) The big giants of the world are trying to monopolize and take over the highly profitable sector. Retailing in IndiaRetailing consists of the sale of physical goods or merchandise from a fixed location, such as a department store, boutique or kiosk, or through a shopping mall, in small lots or in individual lots for direct consumption by the buyer. Retail may include subordinate services, such as delivery. Buyers can be individuals or businesses. In commerce, a "retailer" purchases goods or products in large quantities from manufacturers or importers, either directly or through a wholesaler, and then sells smaller quantities to the end user. Retail is second only to agriculture in India. It employs 40 million people. A large majority of owners/employees are in the business due to lack...... middle of paper ...... institutional investors as a means of stopping the depreciation of the rupee leads to short-term stagnation in FDI and help the country make an impression globally through liberalization and globalization, paving the way for the retail sector.CHAPTER 6BIBLIOGARPHYBOOKS1. S. Neelamegham, “Marketing in India; Cases and Reading”, 3rd edition, 20092. Phillip Kotler, “Marketing Management” 11th edition, 2011WEBSITES1. http://indianresearchjournals.com/pdf/APJMMR/2012/October/4.pdf2. http://www.allbankingsolutions.com/Banking-Tutor/FDI-in-India.htm3.http://www.fibre2fashion.com/industry-article/7/604/fdi-in-retailing1.asp4. http://www.studymode.com/essays/Fdi-In-Retail-Market-In-India-433325.html5. http://irjbm.org/irjbm2013/November/Paper11.pdf6.http://zenithresearch.org.in/images/stories/pdf/2012/JULY/ZIBEMR/20_ZIBEMR_vol2_issue7_july2012.pdf.