Finance International Investments Assignment Example | Topics and Well Written Essays - 1000 words

finance International Investments - Assignment ExampleThe country is anticipate to capture 1% of the global trade in the near future. The level of exports has grown to nearly 24% as compared to the last four years (Guenthner). India is pass judgment to be among the largest economies by 2035 (Guenthner). This is the right time to invest in India based on the level of stinting developing and future prospects. India is viewed as an appropriate market for investors who have long term objectives. Risks of investing in India Investing in India is considered as a huge risk by a number of investors claiming that the chances of success are equal to those of failure (Canada.com). However, these risks are known to exist in all given bank line venture in a country. This concerns the acceptability of the new product in the market (Trade Chakra). The Indian population is at 1.1 billion however only 40 million people frequently use the lucre (Guenthner). Funds should be invested in the onli ne sector as it is among the most promising. In the past, the country has experienced a couple of terrorist attacks and this has had negative effect on investor confidence. However, this concern has a short-term impact and it should not keep open investors from investing their funds in India. Nevertheless, it is a country with high levels of poverty and strict traditions and it may be hard to introduce new products in the market. Its economy has a long way to go originally it fully develops and this poses a risk and challenge of growth to any company. Most of the people are industrious in the agricultural sector and 30% of the population lives below the poverty line (Guenthner). The country has a poor infrastructure and this may prove to be a challenge to an investment. Long-term potential for growth in India Indian economy possesses immense economical promise and potential. This has captured a great deal of worry from investors globally. India is said to be an economy with nume rous possibilities and can have unpredictable impacts on businesses (Hall and Poloz, 771). The economy is expected to grow at a high rate (12.8% per year) in the near future and this is quite showy to the investors. The income for Indians is also expected to increase in the coming years. The economy is expected to be among the most respectable in the next two decades. While it is true that the market in India has greater potential than new(prenominal) markets globally, available funds should be invested in sectors with long-term prospective growth such as engineering science more so the internet. The funds should be invested in areas where the rate of return is over 15%. political or economic upheavals that might impact performance of the fund Political stability in any given country is vital since it determines the stability of the business environment. India is considered to be the biggest country in the world. The current political situation in the country can be described a s fairly stable. The major chore facing politics in India is corruption which is a contributing factor to poor investor confidence. Citizens feel that democracy is not fully exercised which can lead to an uprising in future leading to political instability. The economic state has been improving over the years as earlier mentioned. In terms of purchasing force-out and GDP, India is ranked third globally after the US and China (Guenthner). The GDP in 2007 was estimated to be $2.965 trillion and the GDP per capita was estimated to be $2700 (Guenthner). The FDI in 2007 was $16 million while in 2006 it was $5.5 million