FOREIGN DIRECT INVESTMENT (FDI)

TRENDS
(A Report Submitted in Partial Fulfilment of the Requirements for the Degree of Master of
Business Administration in Pondicherry University)

Mr./ Ms. : R.Ramkumar

Enrolment No. : 0221380199
MBA : IBM

Project Supervisor
DR.T.PONSHUNMUGARAJA
ASSISTANT PROFESSOR

DIRECTORATE OF DISTANCE EDUCATION

PONDICHERRY UNIVERSITY
Puducherry 605 014

(Oct 2023)

CERTIFICATE OF THE GUIDE

This is to certify that the Project Work titled “FOREIGN DIRECT
INVESTMENT (FDI) TRENDS" is a bonafide work of Mr. R.Ramkumar
Enrol No. 0221380199 Carried out in partial fulfillment for the award of degree
MBA International Business of Pondicherry University under my guidance.
This project work is original and not submitted earlier for the award of any
degree/diploma or associateship of any other University/Institution.

Signature of the Guide

Guide's seal

Place :
Date:

2
 STUDENTS’ DECLARATION

I, Mr. R.Ramkumar hereby declare that the Project Work titled "FOREIGN
DIRECT INVESTMENT (FDI) TRENDS” is the original work done by me
and submitted to the Pondicherry University in partial fulfillment of
requirements for the award of Master of Business Administration in
International business is a record of original work done by me under the
supervision of Dr .T. Ponshunmugaraja Assistant Professor

Signature of the Student

Enrolment No:
Date:

3
 ACKNOWLEDGEMENT

Firstly , I am grateful to God for giving me precious time and opportunity

to complete this project .
The Success and outcome of this project required a lot of guidance and
assistance from many people . I am extremely privileged to have got this all
along the completion of my project . All that I have done is only due to such
supervision assistance and I would not forget to thank them all .
I respect and thank Rev. Fr. M. Dominic Jayakumar S.J. Director of PU -
LCS Loyola College , Chennai , for providing me an opportunity to do the
project work and giving me all support and guidance , which made me complete
the project duly . I am extremely thankful to him for providing such a nice
support and guidance , although he had a busy schedule managing the college
affairs .
I owe my deep gratitude to our project guide Dr .T. Ponshunmugarajai , who
took keen interest in my project work and guided me along , till completion of
my project by providing all necessary information for developing a good system
.
I am thankful to and fortunate enough to get constant encouragement , support
and guidance from all teaching staffs of Master of Business Administration
( PU - LCS ) which helped me in successfully completing our project work .
Also , I would like to extend our sincere esteems to all staff in the laboratory for
their timely support .

DATE : RAMKUMAR R

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 TABLE OF CONTENTS

CONTENT DETAILS PAGE NO

Acknowledgments 4
List of Figures 6
CHAPTER I
1. Introduction and Design of the study 8
1.1 Conceptual Introduction 12

1.2 Statement of problem 20

1.3 Objective of the study 25
1.4 Scope of the study 31
1.5 Research methodology 36
1.6 Limitation of the study 38
CHAPTER II

2. Literature Review 42

CHAPTER III

3. Companies Profile 53

CHAPTER IV

4.Analysis & Interpretation 89

CHAPTER V

Summary Of Findings,Suggestion & Conclusion 101

Bibliography 105
Questionnaires 107

LIST OF Figures

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Table.no Contents Page

1 About Apple Inc

2 About Nestle

2 Apple Stock history

3 Apple Revenue 2010-2023

4 Apple PE Ratio 2010-2023

5 Nestle Income statement

6 Nestle Balance sheet 2022

7 Nestle cash flow statement 2021- 22

8 Nestle PE Ratio 2021- 22

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CHAPTER I

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INTRODUCTION

Foreign Direct Investment (FDI) stands as a dynamic force reshaping the global
economic landscape. In an era characterized by economic interdependence and
globalisation, FDI plays a pivotal role in the allocation of resources across
borders, fostering economic growth, technological diffusion, and the integration
of markets. This report embarks on a comprehensive exploration of FDI trends,
unearthing intricate patterns and dynamics that have unfolded across diverse
industries and regions.

The essence of this study lies in its commitment to dissecting the multifaceted
facets of FDI, offering critical insights into its evolution, determinants, and
consequences. As nations worldwide strive to attract and harness FDI for
sustainable development, understanding the intricate patterns that govern these
investments becomes indispensable. The global economy is an intricate web of
capital flows, international trade, and technology transfer, with FDI acting as a
linchpin binding these elements together. It is within this intricate web that we
aim to discern the trends and trajectories of FDI.

In the pages that follow, this report embarks on an academic expedition through
the realms of FDI, investigating its trends and patterns across diverse industries
and regions. Our research journey is grounded in a quest for knowledge, driven
by the imperative to unveil the underlying forces and factors that shape the ebbs
and flows of FDI across the global map.

As we delve into this exploration, we will traverse industries ranging from

manufacturing to services, uncovering how different sectors have experienced
varying degrees of FDI inflows. We will also navigate through regions,
discerning the geographical nuances that influence investment decisions. The
objectives are clear: to distill valuable insights that can inform strategic
decisions for businesses, governments, and policymakers.

This report is structured meticulously, weaving together theoretical frameworks,

empirical analyses, and practical implications. We will begin by establishing a
robust foundation through a comprehensive literature review, ensuring that our
study is firmly grounded in the existing body of knowledge. Subsequently, we

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will delve into the methodological framework employed, shedding light on our
data collection and analysis techniques.

As we journey further, we will meticulously present and analyze the data,

showcasing the trends, patterns, and significant findings that emerge. Our
discussion will elucidate the implications of these findings, drawing connections
between FDI trends and their impact on industries and regions. In closing, we
will offer practical recommendations for businesses and governments seeking to
navigate the complex landscape of FDI in an increasingly interconnected world.

This report, thus, serves as an essential resource for scholars, practitioners, and
policymakers alike, seeking to comprehend the ever-evolving landscape of
Foreign Direct Investment. It is a testament to the significance of FDI as a
catalyst for economic development and innovation, and an invitation to embark
on this intellectual journey to unravel the intricate tapestry of global investment
trends.

The contemporary global economic landscape is marked by its fluidity and

interconnectedness, where borders are porous to not only the exchange of goods
and services but also to investments that cross continents with unprecedented
ease. FDI has become emblematic of this era, signifying the transnational
ambitions of corporations, the strategic priorities of governments, and the
relentless pursuit of growth and innovation.

Understanding FDI trends is imperative for several reasons. First and foremost,
FDI represents a substantial source of external financing for economies,
particularly in the developing world. It serves as a conduit for capital injection,
technological transfer, and the creation of employment opportunities. As nations
vie for a share of the global investment pie, the ability to attract FDI can be a
transformative force, propelling countries towards economic prosperity and
competitiveness.

Second, the industries that attract FDI are not chosen at random. They reflect
the evolving dynamics of the global economy. Investments in technology-
intensive sectors, for instance, have the potential to enhance a nation's
technological capabilities and competitiveness. Conversely, FDI in traditional
sectors may signify other strategic considerations, such as access to resources or
labor markets. Unraveling the patterns of FDI across industries reveals valuable

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insights into the changing nature of the global economy.Third, regions and
countries do not stand equal when it comes to FDI inflows. Geopolitical,
cultural, and economic factors play pivotal roles in attracting investments. The
competition for FDI is fierce, and nations must continually adapt their policies
and strategies to remain attractive destinations. This report, therefore, is an
exploration of the underlying factors that drive FDI location choices, helping
policymakers and investors alike make informed decisions in an ever-shifting
landscape.

Furthermore, as the world grapples with economic uncertainty, shifting trade

dynamics, and the lingering impact of the COVID-19 pandemic, understanding
the trajectory of FDI becomes even more vital. The pandemic-induced
disruptions have reshaped global supply chains and altered business strategies,
making it crucial to examine how these changes have influenced FDI
patterns.As we embark on this journey through the tapestry of FDI trends, it is
essential to acknowledge that this study stands on the shoulders of scholars,
practitioners, and policymakers who have diligently researched and crafted
policies to navigate the intricate realm of FDI. We pay homage to the pioneers
who have laid the groundwork for our understanding of this complex
phenomenon.this report seeks to contribute to the ongoing discourse
surrounding FDI, offering fresh perspectives, empirically grounded insights,
and pragmatic recommendations. It is a testament to the interplay between
theory and practice, academia and industry, and the global and the local. Join us
as we decipher the code of FDI trends, unraveling the secrets held within the
flows of capital that shape our world.

In the grand tapestry of the global economy, FDI trends paint a vivid portrait of
economic progress, technological advancement, and international cooperation.
Every dollar invested in a foreign land is a testament to the interconnectivity of
nations, transcending political boundaries, and fostering a sense of economic
interdependence.

The stakes have never been higher. In an age where the world is facing
multifaceted challenges, from climate change to economic inequality, the role of
FDI in addressing these challenges cannot be overstated. Investments made
today have the potential to shape the world of tomorrow. Whether it's renewable
energy projects that combat climate change or innovative technologies that

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redefine industries, FDI is a catalyst for transformative change. the study of FDI
trends is a reflection of the dynamism of the international business landscape.
Corporations, irrespective of their size, are engaged in a perpetual quest for
growth and expansion. They seek out new markets, access to resources, and
opportunities for innovation. Understanding where these corporate giants
choose to allocate their resources is not merely an academic exercise; it's a
glimpse into the strategic priorities of some of the world's most influential
players.As we delve deeper into this report, we will witness the real-world
impact of FDI trends. We will see how FDI can uplift communities, empower
local businesses, and foster knowledge transfer. Conversely, we will also
confront the challenges associated with FDI, such as concerns over economic
dependency, labor standards, and environmental sustainability.

In the wake of the COVID-19 pandemic, the global economy has been reshaped
in unprecedented ways. Businesses have had to adapt rapidly, and governments
have been compelled to rethink their economic strategies. FDI trends, which
serve as leading indicators of economic sentiment, have been profoundly
influenced by these changes. It is through the lens of FDI that we can gain a
deeper understanding of how nations have navigated these tumultuous
times.This report is an intellectual journey through the nexus of economics,
business strategy, and geopolitics. It is a call to action for those who seek to
harness the power of FDI for the greater good. It is a testament to the fact that in
the complex world of international business, knowledge is the currency of
success.

As we traverse the chapters that follow, we will meet with data, analysis, and
interpretation. We will engage with theories and real-world case studies. We
will uncover the stories behind the statistics and discern the driving forces
behind FDI decisions. It is our sincere hope that this report will inspire, inform,
and empower those who dare to venture into the realms of international business
and investment.Join us on this intellectual voyage as we embark on a quest to
investigate the ever-evolving trends and patterns of Foreign Direct Investment.
Together, let's uncover the secrets of FDI and harness its potential for a brighter,
more interconnected future.

1.1 CONCEPTUAL INTRODUCTION

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In an era characterized by economic interconnectivity and globalization,
Foreign Direct Investment (FDI) stands as a prominent indicator of international
business activities. FDI is emblematic of the ever-expanding horizons of
corporations and investors as they seek new avenues for growth, market
diversification, and strategic partnerships beyond their domestic borders. This
conceptual introduction sets the stage for a comprehensive exploration of FDI
trends, encompassing a thorough investigation of patterns and dynamics across
diverse industries and regions.

The Changing Landscape of Global Investment

The landscape of global investment has witnessed a profound transformation

over recent decades. Traditionally, FDI was primarily associated with large
multinational corporations, but today it extends to include a broader spectrum of
players, such as startups, small and medium-sized enterprises, and sovereign
wealth funds. As the world becomes more interconnected, FDI has emerged as a
vital conduit for the flow of capital, knowledge, and innovation. The evolution
of global investment, epitomized by Foreign Direct Investment (FDI),
represents a profound shift in the dynamics of international business. This
transformation is marked by several notable trends and developments, each of
which underscores the significance of understanding the changing landscape of
global investment:

1. Diversification of Investors: Historically, FDI was predominantly the

purview of large multinational corporations seeking access to new markets and
resources. However, the landscape has diversified. Today, FDI is pursued by a
spectrum of investors, ranging from well-established conglomerates to agile
startups and sovereign wealth funds. This diversification underscores the
democratization of global investment, wherein smaller entities can now compete
on a global scale.

2. Rise of Emerging Markets: The traditional hubs of FDI, such as North

America and Western Europe, continue to attract substantial investments.
However, the emergence of new economic powerhouses in Asia, Africa, and
Latin America has shifted the focus of global investment. These regions are no
longer mere recipients of FDI; they are active contributors to the global
investment ecosystem.

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3. Technology and E-commerce: The advent of the digital age and the
proliferation of e-commerce have reshaped the investment landscape.
Technology companies and startups have become major recipients of FDI, with
investors recognizing the potential of disruptive innovations. The tech sector
has become a catalyst for cross-border investment and collaboration.

4. Sustainability and ESG Considerations: Environmental, Social, and

Governance (ESG) criteria have gained prominence in investment decisions.
Investors are increasingly looking beyond profitability to consider the ethical
and sustainability aspects of their investments. FDI is now being channeled into
businesses that align with ESG principles, reflecting a shift in values and
priorities.

5. Geopolitical Factors: Geopolitical considerations are influencing investment

decisions to an unprecedented degree. Trade tensions, political stability, and
regulatory changes have become critical factors in determining where and how
investors allocate their capital. Geopolitical events can quickly reshape the
investment landscape, necessitating agility and adaptability.

6. Impact of the COVID-19 Pandemic: The global pandemic brought about

unique challenges and opportunities in the investment landscape. It accelerated
digital transformation, reshaped supply chains, and highlighted the importance
of resilience in various industries. The pandemic has triggered a reassessment of
investment strategies and risk management.

7. Sustainable Development Goals (SDGs): The United Nations' Sustainable

Development Goals have influenced investment priorities. Investors are
increasingly aligning their strategies with these global goals, seeking to create
positive social and environmental impacts through their investments. FDI is
playing a pivotal role in driving progress toward the SDGs.

8. Data-Driven Decision-Making: The availability of vast amounts of data and

advancements in data analytics are empowering investors with greater insights.
Data-driven decision-making is becoming a hallmark of modern investment
practices, enabling investors to make more informed choices and adapt to
changing market conditions.

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The changing landscape of global investment is a dynamic and multifaceted
phenomenon. It reflects the adaptability and resilience of businesses and
investors in the face of evolving challenges and opportunities. In this project,
we will explore how these changes manifest in the context of FDI trends,
offering a nuanced understanding of the forces shaping the investment
landscape in various industries and regions., we aim to provide a comprehensive
perspective on the contemporary state of global investment and its implications
for businesses, investors, and policymakers. As we navigate this ever-evolving
terrain, it becomes clear that FDI trends are not static; they are a reflection of
the dynamic interplay of economic, political, and technological forces in our
interconnected world.

The Purpose of Investigating FDI Trends

The purpose of this study is to dissect the multifaceted nature of FDI trends and
patterns, recognizing that they are not mere statistical constructs but reflections
of intricate economic, political, and social forces at play. Understanding FDI
trends is not only essential for the business community but also for governments
and policymakers who aim to create an environment conducive to attracting
investment and fostering economic growth. Foreign Direct Investment (FDI)
trends are not merely data points on a chart; they represent a complex tapestry
of economic, political, and social interactions on the global stage.
Understanding the purpose behind investigating these trends goes beyond
academic curiosity; it carries profound implications for stakeholders,
policymakers, businesses, and the broader society.

1. Informed Decision-Making: One of the primary purposes of scrutinizing FDI

trends is to provide decision-makers with the insights they need to make
informed choices. Corporations contemplating international expansion, for
instance, rely on FDI data to gauge market attractiveness, identify potential
risks, and formulate market entry strategies. Policymakers, on the other hand,
need to comprehend these trends to create a conducive environment for
attracting FDI and nurturing domestic industries.

2. Economic Growth and Development: FDI has become an integral driver of

economic growth and development, especially in emerging markets.
Investigating FDI trends helps governments identify sectors that have the

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potential to spur economic development and job creation. It also allows for a
deeper understanding of how FDI can contribute to infrastructure development,
technology transfer, and skill enhancement within host countries.

3. Global Competition: FDI is, in many ways, a reflection of the global

competitive landscape. As countries vie for foreign investment, they engage in a
race to improve their business environments, regulatory frameworks, and
infrastructure. A comprehensive study of FDI trends enables nations to
benchmark their attractiveness against others, fostering a healthy spirit of
competition that ultimately benefits both investors and host countries.

4. Risk Mitigation: For investors, understanding FDI trends is crucial for risk
mitigation. It helps them assess the stability of host countries, evaluate political
and regulatory risks, and diversify their portfolios strategically. By identifying
regions with consistent FDI inflows, investors can make informed decisions to
protect and grow their investments.

5. Sustainable Development: In recent years, sustainable development has

gained prominence as a key consideration in investment decisions. Investigating
FDI trends provides an opportunity to assess the extent to which investments
align with sustainable development goals. This includes evaluating investments
in renewable energy, environmental conservation, and social responsibility,
contributing to a more sustainable future.

6. Policy Formulation and Reform: Policymakers rely on empirical evidence to

craft policies that attract FDI while safeguarding national interests. By
analyzing FDI trends, governments can tailor policies that address the specific
needs of different industries and regions. This process encourages transparency,
regulatory reform, and the removal of barriers to investment.

7. Academic Inquiry and Knowledge Advancement: Finally, academic research

into FDI trends fuels the advancement of knowledge in the field of international
business and economics. It contributes to the development of theories, models,
and frameworks that can be used to predict and understand future investment
patterns., the purpose of investigating FDI trends transcends statistical analysis;
it serves as a compass guiding stakeholders in a globalized world. It empowers
decision-makers, fosters economic growth, promotes sustainable development,

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and contributes to the ever-evolving landscape of international business. By
embarking on this journey of exploration, we aim to unlock the transformative
potential of FDI trends and their profound impact on our interconnected world.

Industries and Regions: A Dual Focus

FDI is a nuanced phenomenon, influenced by industry-specific factors and

regional dynamics. This project undertakes a dual focus: one on the industries
that are most attractive to foreign investors, and the other on the regions that
have become magnets for FDI. By dissecting these two dimensions, we can
unravel the complexities of FDI trends and provide a comprehensive
analysis.dual-pronged approach—one that scrutinizes not only the industries
that entice foreign capital but also the regions that serve as epicenters for these
investments. By embarking on this dual focus, we aim to unravel the intricate
tapestry of FDI dynamics, where each thread represents an interplay of industry-
specific factors and regional peculiarities.

Industries: A Spectrum of Opportunity

Investors and corporations have diverse motivations and objectives when

seeking FDI opportunities. These objectives often align with specific industries
and sectors. Some industries are inherently capital-intensive, while others thrive
on innovation and intellectual property. Therefore, understanding which
industries attract the most FDI provides invaluable insights into global
economic trends.

1. Manufacturing and Infrastructure: Traditionally, manufacturing and

infrastructure have been magnets for FDI due to their capacity to absorb capital
and generate employment. These sectors form the backbone of industrialization
and development, and tracking FDI trends within them reveals shifts in global
production hubs.

2. Technology and Innovation: In recent years, technology-driven sectors such

as IT, biotechnology, and renewable energy have garnered substantial FDI.
Innovations in these industries hold the promise of disruptive transformation,
and investors seek to capitalize on these opportunities.

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3. Services and Finance: The services sector, including finance,
telecommunications, and hospitality, has also emerged as a major recipient of
FDI. Globalization has heightened the demand for cross-border services,
prompting investments in these industries to facilitate international trade and
commerce.

Regions: Hubs of Economic Activity

Simultaneously, the geographic aspect of FDI cannot be overstated. The regions

and countries that attract FDI do so because of a multitude of factors, including
market size, political stability, infrastructure, and regulatory frameworks. As
such, understanding the regional patterns of FDI is critical for assessing where
global capital is flowing and why.

1. Emerging Markets: Emerging economies, often characterized by rapid

growth and expanding middle-class populations, have become hotspots for FDI.
Asia, particularly China and India, has witnessed a surge in FDI due to its vast
market potential.

2. Developed Economies: Established markets in North America and Western

Europe continue to attract FDI, primarily due to their stable economic
environments, robust infrastructure, and well-established legal systems.

3. Special Economic Zones (SEZs): Some regions, designated as special

economic zones, offer incentives and favorable conditions to foreign investors.
These zones often emerge as concentrated hubs of FDI activity.

By analyzing both industry-specific trends and regional dynamics, we aim to

draw connections between the sectors that are thriving, the regions that are
flourishing, and the intricate web of factors that influence these trends. This
dual focus will provide a holistic understanding of how global economic forces
shape investment decisions, offering valuable insights for businesses,
policymakers, and academics alike.

Unlocking the Power of Data and Analysis

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The heart of this study lies in the data and analysis. By meticulously examining
historical data, current trends, and future projections, we aim to extract
meaningful insights. The patterns we uncover will shed light on the industries
favored by FDI, the countries that have emerged as global investment hubs, and
the factors shaping investment decisions. At the heart of this research endeavor
lies a fundamental truth: data and analysis are the keystones upon which our
understanding of Foreign Direct Investment (FDI) trends is built. In an era
where information is abundant and accessible, harnessing the power of data has
become not just advantageous but imperative in deciphering the intricacies of
global economic activities.

The Significance of Data-Driven Insights

Data, often termed the "new oil" of the digital age, carries immense significance
in our quest to comprehend the dynamics of FDI. It is through the systematic
collection, analysis, and interpretation of data that we can unearth hidden
patterns, discern emerging trends, and make informed decisions. In the realm of
international business, where decisions involve significant risks and rewards,
data-driven insights are invaluable.

Data Sources and Methodologies

Our study relies on an eclectic mix of data sources, ranging from governmental
reports and international organizations' statistics to corporate filings and
academic research. We employ a multi-methodological approach, combining
quantitative and qualitative analyses to provide a comprehensive view of FDI
trends. Quantitative methods help us identify statistical correlations, while
qualitative methods enable us to delve into the nuanced motivations and
strategies behind FDI decisions.

Historical Context and Longitudinal Analysis

A crucial aspect of our analysis is the incorporation of historical context. FDI

trends do not exist in isolation; they are shaped by past events, policy changes,
economic crises, and technological breakthroughs. Therefore, we embark on a
longitudinal analysis, tracing the evolution of FDI patterns over time. This

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historical perspective allows us to discern trends, cycles, and paradigm shifts
that may not be immediately evident from a snapshot of the present.

Geospatial and Sectoral Mapping

To gain a comprehensive understanding of FDI, we engage in geospatial and

sectoral mapping. Geospatial analysis pinpoints geographical regions that have
become focal points for investment, while sectoral mapping reveals which
industries are witnessing increased FDI inflows. By juxtaposing these two
dimensions, we aim to provide a nuanced portrayal of where and why
investments are being channeled.

Predictive Modeling and Future Projections

While our primary focus is on analyzing historical data and current trends, we
also endeavor to develop predictive models that offer insights into the future of
FDI. By extrapolating from existing patterns and accounting for emerging
factors, we aim to provide stakeholders with foresight, enabling them to make
proactive decisions in an ever-changing global economic landscape.

Leveraging Technology and Big Data Analytics

In our quest to unlock the power of data and analysis, we leverage cutting-edge
technologies and big data analytics tools. These innovations enable us to
process vast datasets efficiently, extract meaningful information, and visualize
complex trends. By harnessing the capabilities of artificial intelligence and
machine learning, we can uncover hidden insights that may elude traditional
analytical approaches.our journey into the world of FDI trends is an exploration
of the past, present, and future of international investment. Through the rigorous
application of data and analysis, we aim to illuminate the pathways, choices,
and consequences that define the complex tapestry of FDI in a rapidly changing
world.

Actionable Recommendations – Guiding the Way Forward

While not a separate chapter, this section is interwoven throughout the report. It
emerges in Chapter 5, where we discuss the practical implications of our

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findings, and it is further refined in Chapter 6. Our recommendations serve as
the path forward, offering insights for businesses seeking to optimize their FDI
strategies and policymakers aiming to create an attractive investment climate.
These recommendations are informed by the trends and patterns we uncover,
providing actionable insights that can shape future decisions. we embark on this
expedition through the world of FDI trends, we invite readers to join us in this
intellectual journey. The roadmap outlined in this report ensures that you
traverse each phase of the research, from theoretical underpinnings to empirical
analysis, and ultimately to practical applications. Together, we aim to illuminate
the complex, ever-evolving realm of FDI, contributing to the collective
understanding of international business dynamics.

1.2 STATEMENT OF PROBLEM

Foreign Direct Investment (FDI) has emerged as a critical driver of economic

growth and development in the globalized world. Understanding the trends and
patterns of FDI is essential for both policymakers and businesses to make
informed decisions and harness the benefits of international investment. The
problem addressed in this study revolves around the need to investigate and
analyze the trends and patterns of FDI in various industries and regions. This
problem can be broken down into several key aspects:

1.2.1 Industry-specific Trends

- The globalization of markets and the emergence of new industries have
transformed the landscape of FDI. It is imperative to examine how FDI has
evolved within specific industries, such as technology, manufacturing, finance,
and services. Are there industries that consistently attract higher levels of FDI?
What are the driving forces behind industry-specific trends in FDI?

Industry-specific trends in Foreign Direct Investment (FDI) represent a critical

dimension of our investigation. The globalization of markets and the rapid
advancement of technology have given rise to diverse sectors, each with its
unique FDI dynamics. Understanding how FDI has evolved within specific
industries, such as technology, manufacturing, finance, and services, is
paramount. By scrutinizing these industry-specific trends, we aim to discern
whether particular sectors consistently attract higher levels of FDI and to
identify the driving forces behind these trends. In doing so, we aspire to provide
valuable insights into which industries hold the greatest allure for foreign

20
investors and whether there are emerging sectors that demand closer attention
for international business strategies.

Industry-specific trends in Foreign Direct Investment (FDI) are integral to our

investigation as they reveal a nuanced perspective on international investment
patterns. The contemporary global business landscape is characterized by the
rapid evolution of industries, each propelled by unique factors and
opportunities. Our aim is to delve deep into these sectors, including technology,
manufacturing, finance, and services, to unearth the intricacies of FDI
allocation. By closely scrutinizing industry-specific trends, we intend to discern
whether certain sectors consistently magnetize higher FDI inflows due to factors
such as technological innovation, market demand, or regulatory advantages.
Moreover, we seek to elucidate the interplay between industry dynamics and
FDI patterns. In the process, we hope to identify industries that have become
FDI hotspots, the reasons behind their attractiveness, and whether any specific
industries are undergoing transformative changes that redefine their role in the
global investment landscape. This exploration will serve as a vital compass for
businesses and policymakers seeking to capitalize on industry-specific FDI
trends to enhance economic growth and international competitiveness.

1.2.2 Regional Disparities

- FDI does not distribute evenly across the globe. Certain regions or countries
tend to attract more FDI inflows than others. Investigating regional disparities in
FDI can help identify the factors contributing to these variations. What makes
some regions more attractive to foreign investors than others? Are there
geopolitical or economic factors that influence regional FDI trends?

Regional Disparities in Foreign Direct Investment (FDI) are a multifaceted

challenge that requires thorough examination. While FDI inflows can
significantly boost economic growth and development in host regions, they are
not evenly distributed across the globe. Some regions and countries consistently
attract higher levels of FDI, while others struggle to attract foreign investors.
This aspect of the problem raises questions about what makes certain regions
more attractive for FDI and how geopolitical, economic, and regulatory factors
play into these dynamics. Investigating the disparities in FDI distribution is
crucial for identifying opportunities to enhance FDI attractiveness in regions
that are currently underperforming, as well as for understanding the broader

21
implications of regional imbalances on global economic stability and
development.

the analysis of regional disparities in FDI extends to the examination of the

impact of cultural, social, and historical factors on investment patterns. Cultural
nuances and historical relationships between countries often influence
investment decisions. For instance, proximity, shared language, and cultural
familiarity can be drivers of FDI inflows. Conversely, historical conflicts or
political tensions might deter foreign investors from certain regions. By delving
into these intricate factors, this study aims to shed light on the complexities of
regional disparities in FDI and provide insights into strategies that governments
and businesses can employ to mitigate disparities and foster a more balanced
distribution of foreign direct investment on a global scale.

1.2.3 Impact of Policy Changes

- Governments often implement policies and incentives to attract FDI into their
countries. Changes in these policies can have a significant impact on FDI
trends. This study aims to analyze how alterations in government policies, such
as tax incentives, trade agreements, and regulatory reforms, affect FDI inflows.
Do policy changes lead to shifts in FDI patterns?

Government policies and incentives play a pivotal role in shaping FDI trends.
Policy changes, whether aimed at liberalizing trade, enhancing investor
protection, or offering tax incentives, have the potential to significantly
influence FDI inflows. This study will examine the extent to which policy
alterations impact FDI patterns in various regions and industries. It will assess
whether favorable policy changes, such as the simplification of regulatory
procedures or the creation of special economic zones, stimulate FDI, and
conversely, whether restrictive policies hinder foreign investment. By analyzing
the responsiveness of FDI to policy adjustments, this research seeks to provide
valuable insights into the intricate relationship between government actions and
international investment flows.incentives wield considerable influence over the
ebb and flow of FDI across the global landscape. Changes in these policies,
whether driven by economic objectives, political considerations, or international
agreements, can trigger profound shifts in FDI patterns. This study will
meticulously scrutinize the multifaceted impact of policy changes on FDI
trends. It will encompass an in-depth analysis of various policy instruments,

22
ranging from tax incentives and investment guarantees to trade agreements and
regulatory reforms. The overarching goal is to unravel how alterations in
government strategies impact FDI inflows and outflows. By examining both
successful cases where policy reforms have attracted substantial FDI and
instances where stringent regulations deter foreign investors, this research aims
to distill best practices and pitfalls in policy-making for FDI promotion.
Furthermore, it will delve into the temporal dimension of policy effects,
considering short-term versus long-term implications, to provide a nuanced
understanding of the dynamic interplay between government actions and
international investment decisions. Ultimately, this investigation seeks to offer a
comprehensive framework for policymakers and stakeholders to navigate the
intricate terrain of policy-driven FDI trends.

1.2.4 Economic and Geopolitical Events

- Global economic and geopolitical events, such as economic recessions, trade
tensions, or geopolitical conflicts, can disrupt FDI flows. It is essential to
explore how major global events influence FDI trends. Do economic downturns
lead to reduced FDI, or do they create new investment opportunities in specific
sectors or regions?

The global landscape of foreign direct investment (FDI) is not immune to the
impact of significant economic and geopolitical events. These events can exert
substantial influence on the direction and magnitude of FDI flows. Economic
recessions, trade disputes, and geopolitical conflicts have the potential to disrupt
established investment patterns. For instance, during economic downturns,
foreign investors may become more cautious, leading to reduced FDI in certain
sectors or regions. Conversely, periods of economic stability and growth may
attract greater FDI interest. Moreover, geopolitical tensions can lead to shifts in
FDI as investors seek safer havens or navigate changing trade dynamics. By
examining the relationship between major economic and geopolitical events and
FDI trends, this study aims to shed light on the resilience and adaptability of
international investment in the face of global uncertainties.

The ebb and flow of foreign direct investment (FDI) are intricately intertwined
with the dynamics of the global economy and geopolitical landscape. Economic
and geopolitical events, whether sudden crises or gradual shifts, have the

23
potential to reshape the FDI landscape in profound ways. Economic downturns,
such as the global financial crisis of 2008, have historically triggered a
reassessment of investment strategies. Investors become more risk-averse,
favoring stable and secure markets while curtailing their commitments to
regions facing economic turbulence., trade disputes and geopolitical conflicts
can create uncertainties that ripple through FDI trends. Tariffs, sanctions, and
trade tensions between major economies can alter the calculus for multinational
corporations, prompting them to reconsider their investment destinations.
Geopolitical events, such as territorial disputes or regime changes, can trigger
abrupt shifts in FDI, as investments may be withdrawn from regions deemed
politically unstable.

1.2.5 Future Prospects

- FDI is not static; it evolves over time. Understanding current trends can
provide insights into future prospects for FDI. This study will investigate
whether current FDI patterns can offer predictions about the future direction of
international investment. Are there emerging markets or industries that hold
promise for FDI in the coming years?
Understanding the future prospects of Foreign Direct Investment (FDI) is of
paramount importance for businesses and policymakers alike. By analyzing
current FDI patterns and identifying emerging markets, industries, and
technologies, this study seeks to provide insights into where international
investments are likely to flow in the coming years. As the global economic
landscape continues to evolve, it is crucial to anticipate shifts in FDI
destinations and sectors, thereby enabling proactive strategies for attracting
investments or identifying promising avenues for international expansion. This
aspect of the problem addresses the dynamic and forward-looking nature of FDI
trends, aiming to equip stakeholders with the knowledge needed to make
informed decisions in a rapidly changing global business environment.

future prospects of Foreign Direct Investment (FDI) is a multifaceted endeavor

that encompasses the analysis of current trends, economic forecasts, and
emerging market dynamics. In a world characterized by rapid globalization and
technological advancements, staying ahead of the curve in FDI trends is vital.
This aspect of the problem delves into the intricacies of how FDI trends can
serve as a barometer for future investment opportunities. By examining factors
such as demographic shifts, geopolitical developments, and the adoption of
disruptive technologies, this study aims to shed light on the potential hotspots

24
for FDI in the years to come. Moreover, it seeks to answer critical questions:
Will certain industries experience a surge in FDI due to transformative
innovations? How will shifts in consumer preferences and market dynamics
influence the geographical distribution of investments? Ultimately, the objective
is to provide stakeholders with valuable foresight into where FDI is likely to
flow, enabling them to formulate strategies that align with the evolving global
economic landscape.

1.3 OBJECTIVE OF THE STUDY

"To comprehensively examine and analyze the trends and dynamics of Foreign
Direct Investment (FDI) across multiple dimensions, including geographical
regions, industries, and time periods. This project aims to achieve the following
specific objectives:

Identify Global FDI Trends: Investigate the global landscape of FDI,

identifying key trends, shifts, and emerging markets that have attracted
significant FDI inflows.

Sectoral Analysis: Analyze the distribution of FDI across various industry

sectors, assessing the preferences of multinational corporations (MNCs) and the
factors influencing their investment choices.

Regional Focus: Assess the regional distribution of FDI and examine the
factors that drive FDI into specific regions, highlighting variations and
commonalities among regions.

Investigate FDI Drivers: Explore the determinants and drivers of FDI,

including economic, political, regulatory, and cultural factors that influence
investment decisions.

Examine FDI Policies: Evaluate the impact of host country policies,

regulations, and incentives on FDI inflows, and analyze how changes in these
policies affect FDI trends.

25
Risk Assessment: Assess the risks associated with FDI, both from the
perspective of investors and host countries, and suggest strategies to mitigate
these risks.

Implications for International Business: Discuss the implications of FDI

trends for international business strategies, including market entry, expansion,
and competitiveness.

By achieving these objectives, this project aims to contribute valuable insights

to the field of international business, offering a deeper understanding of FDI
trends and their significance in the context of global economic and business
dynamics."

1. Identify Global FDI Trends:

Conduct an in-depth analysis of FDI trends within specific industries, including

but not limited to manufacturing, services, technology, energy, and agriculture.
Explore how FDI varies across these sectors in terms of investment volume,
sectoral growth, and market penetration. conducting a comprehensive industry
analysis within the scope of this study is to delve deep into the intricate web of
Foreign Direct Investment (FDI) dynamics across various sectors. This
exploration aims to unravel the nuanced patterns and trends characterizing FDI
inflows into diverse industries, such as manufacturing, services, technology,
energy, and agriculture. By scrutinizing these sectors individually, we seek to
uncover the unique drivers, challenges, and opportunities that govern FDI
decisions within each industry.

The analysis will encompass a multifaceted examination of FDI volumes,

sectoral growth trajectories, and market penetration strategies employed by
foreign investors. It will not only unveil the current state of affairs but also chart
the historical evolution of FDI trends within these sectors. Moreover, we will
scrutinize the implications of FDI for local businesses, competition dynamics,
and supply chain networks, offering a comprehensive view of how foreign
investments shape industry landscapes.including businesses, policymakers, and
investors, with a holistic understanding of where and why FDI is channeled into
specific sectors. This knowledge will be instrumental in facilitating strategic
decision-making, fostering sector-specific policies, and harnessing the full

26
potential of FDI as a driver of economic growth and industrial transformation in
the global context.

Sectoral Analysis :

The Geographical Diversity Examination constitutes a pivotal facet of this

research endeavor, delving deep into the intricate web of Foreign Direct
Investment (FDI) distribution across different regions and countries. It unfolds a
multifaceted analysis, elucidating the patterns and preferences that drive FDI
inflows and outflows. As globalization continues to reshape the landscape of
international business, understanding the geographical dynamics of FDI is
paramount. This study aims to scrutinize not only the quantitative aspects, such
as the volume and value of FDI across regions, but also the qualitative aspects,
encompassing the strategic motives and socio-economic consequences of such
investments. It seeks to unveil the nuances behind why certain regions and
countries are favored as prime destinations for FDI, investigating factors
ranging from market size and growth prospects to regulatory frameworks and
political stability. Moreover, it endeavors to discern the evolving trends in
geographical preferences, with a particular focus on emerging markets, which
have been increasingly attracting FDI due to their burgeoning consumer bases
and rapid economic development. Through this exploration, the research seeks
to contribute valuable insights into the dynamic interplay between global
businesses and the diverse geographical landscapes they navigate, shedding
light on the geopolitical and economic implications of these choices.

27
Drivers and inhibitors :

"Identifying the drivers and inhibitors of FDI is a critical aspect of

understanding the dynamics of international investment. On the one hand,
drivers play a pivotal role in attracting FDI, encompassing a range of factors
including government policies and regulations, favorable economic conditions,
infrastructure development, market size, and potential for profit. Governments
and host countries often compete to create an environment conducive to FDI,
offering tax incentives, streamlined regulatory processes, and other incentives to
entice foreign investors. Furthermore, the allure of expanding into untapped
markets, accessing skilled labor forces, and benefiting from technological
advancements contributes to the attractiveness of certain regions and industries
for FDI. On the other hand, inhibitors can significantly deter FDI inflows. These
inhibitors encompass political instability, corruption, legal and regulatory
barriers, currency fluctuations, trade restrictions, and economic uncertainties.
These factors can introduce significant risks that dissuade potential investors.
The identification of both drivers and inhibitors is essential for policymakers
and businesses alike, as it informs strategic decisions on investment locations,
risk mitigation, and policy formulation, ultimately shaping the landscape of
international business and economic development."

Impact Assessment :
The Impact Assessment of FDI is a critical facet of this study, as it delves into
the multifaceted effects that foreign direct investment has on host economies.
FDI is often regarded as a potent driver of economic growth and development.
It brings with it the promise of job creation, technology transfer, increased
production capacities, and access to global markets. However, its true influence
extends far beyond these immediate economic metrics. This research undertakes
a meticulous examination of the broader consequences, both positive and
negative, of FDI inflows. It assesses how FDI shapes the socio-economic
landscape of host countries, influencing income distribution, education,
healthcare, and infrastructure development. Moreover, it scrutinizes the
potential challenges, such as the risk of resource depletion, environmental
degradation, and cultural shifts. This assessment strives to provide a
comprehensive understanding of the nuanced and interconnected effects of FDI,
shedding light on its role in shaping not just the economic but also the social
and environmental dimensions of host economies. In doing so, it equips
policymakers, businesses, and investors with a holistic perspective that can

28
inform strategies for harnessing FDI's benefits while mitigating its potential
drawbacks, ultimately contributing to more sustainable and equitable
development.

comparative Analysis

The Comparative Analysis component of this study constitutes a critical

examination of Foreign Direct Investment (FDI) trends and patterns over a
specified period, encompassing historical data as well as recent developments.
Through an extensive examination of FDI inflows and outflows, this analysis
seeks to unearth nuanced shifts and recurring patterns within the international
investment landscape. By considering factors such as economic conditions,
regulatory environments, industry-specific dynamics, and geopolitical
influences, this study aims to unravel the underlying drivers that have shaped
FDI flows across different industries and regions. It involves a comprehensive
exploration of FDI data, distinguishing between emerging markets and
developed economies, and identifying trends that transcend regional boundaries.
Additionally, it delves into the implications of these trends, assessing their
significance for businesses, governments, and investors alike. Through this
Comparative Analysis, the study endeavors to provide a comprehensive
understanding of how FDI trends have evolved, thereby shedding light on the
changing dynamics of global economic interdependence and international
business strategies.

Risk and Opportunity Assessment:

Within the complex landscape of Foreign Direct Investment (FDI), a thorough

assessment of risks and opportunities is imperative to guide both investors and
policymakers effectively. Risks encompass a multifaceted spectrum, ranging
from political instability and regulatory uncertainties to currency exchange rate
fluctuations and global economic crises. These risks can significantly impact the
success and sustainability of FDI ventures, potentially leading to financial
losses and operational challenges. However, it is equally important to recognize
that FDI also presents a multitude of opportunities. Emerging markets, for
instance, offer immense growth potential and access to large consumer bases,
making them attractive destinations for investment. Technological
advancements and innovation-driven industries provide opportunities for FDI to

29
stimulate economic development and promote knowledge transfer. Moreover,
FDI can enhance competitiveness, foster partnerships, and facilitate market
access. An astute risk and opportunity assessment enables investors to devise
strategies for risk mitigation and capitalize on favorable conditions, contributing
to the overall success of international business ventures. In this study, we will
delve deep into these risks and opportunities, providing a nuanced
understanding of how FDI can navigate the intricate global economic landscape.

Policy Recommendations

In light of the extensive analysis and insights gleaned from this study on
Foreign Direct Investment (FDI) trends across various industries and regions, it
is imperative to formulate a set of policy recommendations that can guide
governments, regulatory bodies, and stakeholders in optimizing the FDI
environment and enhancing its positive impact on host economies. These
recommendations are not only aimed at attracting and retaining FDI but also at
ensuring its sustainability and alignment with broader economic development
goals.
To encourage FDI inflows, governments should streamline administrative
processes and reduce bureaucratic hurdles. This includes simplifying
registration, permits, and licensing procedures for foreign investors. The
creation of dedicated one-stop investment promotion agencies can serve as a
pivotal mechanism for providing information, guidance, and assistance to
potential investors. Policymakers should implement investor-friendly policies
that provide stability and predictability to foreign investors. Consistent and
transparent regulatory frameworks, coupled with a commitment to uphold
property rights, are essential to instill investor confidence. Additionally,
offering incentives, such as tax breaks or investment guarantees, can further
attract FDI. FDI often gravitates towards regions with well-developed
infrastructure, including transportation, energy, and telecommunications.
Governments should invest in infrastructure projects that not only facilitate FDI
but also benefit local industries and communities. Public-private partnerships
can be explored to accelerate infrastructure development. To maximize the
benefits of FDI, it is crucial to invest in human capital development. Education
and skills training programs should align with industry needs to ensure that host
countries can provide a skilled workforce that meets the demands of foreign
investors. Collaboration between educational institutions and businesses can

30
facilitate this process. Governments should adopt a flexible regulatory
approach that accommodates the unique needs of different industries and
investors. Tailored regulations that strike a balance between protecting national
interests and promoting foreign investment can be instrumental in attracting
diverse FDI. In order to mitigate risks associated with FDI, governments
should develop strategies to address political, economic, and social
uncertainties. This includes building strong institutions, promoting good
governance practices, and actively engaging in conflict resolution and crisis
management mechanisms.
Policymakers should align FDI policies with broader sustainable development
goals. Encouraging investments that contribute to environmental sustainability,
social equity, and technological advancement can have long-term benefits for
both host countries and investors.Regularly gather and analyze data on FDI
trends, including sector-specific and regional data. Encourage research
collaborations between government agencies, academic institutions, and
industry stakeholders to gain deeper insights into the impacts of FDI and refine
policies accordingly.

1.4 SCOPE OF THE STUDY

The scope of this study on Foreign Direct Investment (FDI) Trends

encompasses a comprehensive investigation into the trends and patterns of FDI
in various industries and regions. Specifically, the study will focus on:

1. FDI Trends:

The study will analyze the historical and current trends of FDI flows, examining
the global landscape to identify shifts, fluctuations, and emerging patterns in
foreign direct investment.

Foreign Direct Investment (FDI) trends constitute a dynamic and multifaceted

landscape in the realm of global economics. The study of FDI trends delves
deep into the intricate patterns of capital flow between countries, reflecting not
only economic decisions but also geopolitical factors, technological
innovations, and shifts in market dynamics. It encompasses an exploration of
historical trajectories, providing insights into the ever-evolving strategies of

31
multinational corporations and the regulatory frameworks that facilitate or
hinder cross-border investments. Current FDI flows offer a snapshot of the
contemporary global economy, highlighting not only the dominance of certain
economies as investors but also the emergence of new players on the
international stage. Sectoral trends reveal the adaptability of FDI, showcasing
the industries that attract the most significant capital injections, whether it be
technology-driven sectors, traditional manufacturing, or the burgeoning field of
sustainable investments. Additionally, regional patterns demonstrate the
geopolitical influences that shape FDI distribution, with regions fostering
economic integration or experiencing political stability often gaining favor
among investors. The FDI landscape also mirrors societal concerns, with
investments increasingly scrutinized through the lens of sustainability and
responsible governance. Post-pandemic FDI trends bring into focus the
transformative effects of the COVID-19 pandemic on global investment
strategies, underlining the importance of adaptability and resilience. Amidst
these multifaceted trends, it becomes evident that FDI is not merely an
economic indicator but a reflection of the intricate interplay of global forces,
making it a subject of paramount importance for policymakers, businesses, and
investors navigating the ever-shifting contours of the international business
arena.

2. Industry Analysis:

A key component of the research will involve a sector-specific analysis of FDI

trends. It will delve into different industries, including but not limited to
manufacturing, technology, finance, and services, to understand how FDI has
influenced and been influenced by each sector.

The section dedicated to industry analysis within this study will entail an in-
depth examination of foreign direct investment (FDI) trends within various
sectors of the global economy. It will involve a meticulous exploration of the
unique characteristics, opportunities, and challenges associated with each
industry, shedding light on the driving forces behind FDI flows. This analysis
will encompass traditional sectors like manufacturing and services, along with
emerging domains such as technology, renewable energy, and healthcare.
Furthermore, it will scrutinize the influence of industry-specific factors on

32
investment decisions, such as regulatory frameworks, technological
advancements, market maturity, and the potential for innovation and disruption.
By scrutinizing FDI patterns across industries, this study aims to provide critical
insights into how different sectors attract and harness foreign investment,
contributing to a nuanced understanding of the broader landscape of
international business and economic development.

3. Regional Analysis:

The study will explore FDI trends at a regional level, examining the preferences
of investors for particular geographic regions. It will include an assessment of
FDI trends in developed economies, emerging markets, and specific countries or
regions of interest.

First and foremost, the analysis will encompass an examination of developed

economies, where FDI inflows and outflows have historically played a
significant role in shaping economic trajectories. Regions such as North
America, Western Europe, and parts of Asia have traditionally attracted
substantial FDI, and a comparative study will decipher how these regions have
evolved in their appeal to foreign investors. The research will delve into the
factors underpinning FDI trends in these regions, including economic stability,
mature markets, and advanced infrastructure.

Conversely, emerging markets, often characterized by rapid economic growth

and transformative potential, will be a focal point of the analysis. Notable
regions such as Southeast Asia, Latin America, and parts of Africa have
increasingly become magnets for foreign investors seeking higher returns and
untapped opportunities. The study will endeavor to elucidate the unique
challenges and opportunities these regions present, ranging from regulatory
environments to political stability and infrastructural development.

Additionally, the examination will extend to regional economic blocs and

agreements, such as the European Union, ASEAN, and Mercosur, as they have
a profound influence on FDI trends within their respective spheres. The
interplay between regional integration and FDI patterns will be scrutinized to
determine how policies and agreements can impact investment decisions.

33
Political and geopolitical factors will not be overlooked in this analysis. Regions
grappling with political instability, conflicts, or trade tensions can experience
distinctive FDI dynamics. The study will endeavor to disentangle the intricate
relationship between political factors and foreign investment, assessing how
geopolitics can either attract or deter FDI.

Moreover, the analysis will consider the burgeoning phenomenon of intra-

regional FDI, where countries within the same region increasingly invest in one
another. This trend, driven by factors like supply chain diversification and
market access, warrants closer inspection to comprehend its implications for
regional economic dynamics.

Lastly, the study will explore the impact of global events, such as economic
crises, pandemics, and trade disputes, on regional FDI trends. The dynamic
nature of the global economy necessitates a nuanced understanding of how
external shocks reverberate through regional FDI landscapes.

In sum, the "Regional Analysis" section will encapsulate a comprehensive

exploration of FDI trends within diverse geographic regions, from established
economic powerhouses to emerging markets and regions grappling with
political complexities. Through rigorous examination and insightful
interpretation, this section aims to offer a profound understanding of how
geography and regional dynamics influence the ebb and flow of foreign direct
investment on a global scale.

4. Factors Influencing FDI:

This research will identify and analyze the factors that drive FDI decisions,
including government policies, economic conditions, trade agreements, political
stability, and market potential.

The study will undertake an exhaustive exploration of the multifaceted factors

that exert influence over Foreign Direct Investment (FDI) decisions. It will
scrutinize a spectrum of determinants ranging from macroeconomic conditions
to micro-level factors. At the macroeconomic level, the research will investigate
the role of host country economic stability, growth prospects, and inflation rates

34
in attracting or deterring FDI. Additionally, it will delve into the influence of
government policies, including trade policies, tax regimes, and investment
incentives, on FDI flows. Political stability and regulatory frameworks will be
assessed for their impact on investor confidence. The study will also dissect the
significance of market size, consumer demographics, and the availability of
skilled labor in driving FDI preferences. Furthermore, the research will
scrutinize global factors such as exchange rate stability, international trade
agreements, and geopolitical dynamics, recognizing their potential to sway
cross-border investment decisions. In-depth analysis of industry-specific
factors, including technological advancements, innovation ecosystems, and
supply chain efficiencies, will offer insights into how different sectors attract
FDI. By considering these diverse influences, the study endeavors to provide a
holistic understanding of the intricate web of factors shaping FDI trends on a
global scale.

5. Comparative Analysis:

To provide a well-rounded view, the study will conduct comparative analyses

of FDI trends in different time periods, industries, and regions, highlighting
similarities and differences The comparative analysis in this study serves as a
pivotal component in unraveling the intricate tapestry of Foreign Direct
Investment (FDI) trends. It involves a meticulous examination of diverse facets
of FDI, juxtaposing various parameters to discern patterns, deviations, and
nuanced shifts over different timeframes, industries, and regions.

One of the primary focal points of this comparative analysis is the examination
of historical FDI data spanning several decades. This temporal comparison
sheds light on the evolution of FDI, delineating key epochs marked by
significant regulatory changes, economic crises, and pivotal global events. By
drawing parallels between historical milestones and FDI trends, it becomes
possible to discern causal relationships and identify recurring patterns that have
shaped the trajectory of FDI.

the study engages in a nuanced comparison of FDI across distinct industry

sectors. Each sector presents a unique landscape for investment, characterized

35
by varying levels of risk, innovation, and market saturation. Through this
comparative lens, the research seeks to unravel which industries have
consistently attracted substantial FDI, which have witnessed sporadic bursts of
investment, and which are emerging as focal points for future investment.

Geographical regions also occupy a central position in the comparative analysis.

By scrutinizing FDI patterns across regions, the study aims to elucidate the
dynamic interplay of factors that influence investment decisions. It explores
how regional economic stability, political climate, trade agreements, and market
potential converge to dictate the ebb and flow of FDI in different parts of the
world.

The comparative analysis extends beyond the realm of geography and delves
into the strategies employed by investors. It dissects the approaches adopted by
multinational corporations, sovereign wealth funds, and private equity firms
across diverse sectors and regions. This multifaceted examination allows for the
identification of commonalities and distinctions in the investment strategies
employed by various types of investors.

the study navigates the terrain of emerging markets, comparing their

attractiveness to investors against established economies. This analysis provides
insights into the factors that position certain emerging markets as hotbeds for
FDI, as well as the challenges they face in sustaining this momentum., the
comparative analysis casts a discerning eye on the impact of external factors
such as geopolitical tensions, currency fluctuations, and regulatory changes. By
contrasting periods of relative stability with those marked by upheaval, the
research aims to unearth the resilience of FDI and its adaptability in the face of
adversity.

1.5 RESEARCH METHODOLOGY

1. Research Design:

- The research design for this study will be descriptive and analytical in
nature. It will involve a combination of quantitative and qualitative research
methods.

2. Data Collection:

36
 - Secondary Data:
- FDI Reports: Collect historical data on FDI trends in the technology and
food industries, with a specific focus on Apple and Nestlé.
- Annual Reports: Analyze the annual reports of Apple and Nestlé to gather
information on their FDI activities.
- Government Publications: Access government publications and reports
related to FDI regulations and trends in the countries where Apple and Nestlé
operate.
- Academic Journals: Review academic articles and research papers on FDI
in the technology and food sectors.

- Primary Data (if applicable):

- Surveys/Questionnaires: Conduct surveys among industry experts,
investors, or key stakeholders to gather insights into FDI trends and their impact
on Apple and Nestlé.

3. Data Analysis:

- Quantitative Analysis:
- Use statistical tools to analyze historical FDI data, including trends,
patterns, and investment amounts.
- Calculate key FDI indicators such as FDI inflow, outflow, and net FDI for
both companies.
- Perform a comparative analysis between Apple and Nestlé's FDI trends.

- Qualitative Analysis:
- Conduct content analysis of annual reports and government publications to
identify the motivations and challenges faced by Apple and Nestlé in relation to
FDI.
- Analyze qualitative survey responses for insights into the perception of FDI
in the technology and food sectors.

4. Comparative Analysis:

- Compare the FDI trends of Apple and Nestlé, highlighting similarities and
differences in their FDI strategies, geographic locations, and reasons for
investment.

1.6 LIMITATION OF THE STUDY

Data Availability and Reliability:

37
 The study's reliance on data for analyzing FDI trends poses significant
challenges related to data availability and reliability. FDI data collection can be
inconsistent across different regions and industries, leading to gaps in the
dataset. Additionally, the accuracy and reliability of data from various sources,
including government reports, international organizations, and private sector
databases, can vary widely. These discrepancies can introduce uncertainty and
potential biases into the analysis, affecting the overall validity of the findings.
Researchers must carefully consider the quality and completeness of the data
used, as well as any potential limitations in data collection methodologies, when
drawing conclusions about FDI trends in various industries and regions.

Generalisation:

The generalisation limitation of this study arises from the diversity and
complexity of FDI trends across industries and regions. Given the broad scope
of investigating FDI patterns across various sectors and geographic areas, it's
essential to recognize that the findings may not be universally applicable. FDI
behaviors and motivations can vary significantly, and this study may not capture
all the nuances and intricacies present in every industry or region. Factors such
as cultural differences, economic conditions, and regulatory environments can
lead to divergent FDI trends, making it challenging to draw sweeping
conclusions that hold true for all cases. As such, the study should be viewed as a
valuable exploration of trends and patterns, but caution should be exercised
when attempting to apply its findings universally.

Ddata collection period:

The limitation related to the data collection period in this study pertains to the
potential for time-specific biases. By focusing on a particular timeframe for data
collection and analysis, the study may inadvertently overlook FDI trends that
have emerged before or after that period. Economic and political conditions can
change rapidly, and the chosen timeframe may not fully capture the evolving
nature of foreign direct investment patterns. This limitation underscores the
importance of recognizing that FDI trends are dynamic and subject to
fluctuations over time, which researchers should consider when drawing
conclusions from the data.

Scope of industries

The scope of industries in this study is extensive, encompassing a wide range of

sectors and sub-sectors that attract foreign direct investment (FDI). However, it
is important to note that the sheer diversity of industries can pose certain
limitations. The study may not delve deeply into the unique dynamics,

38
challenges, and opportunities within each industry. As a result, the analysis may
provide a broad overview of FDI trends but may not capture the intricate
nuances and specific factors that drive investment decisions in individual
sectors. Additionally, variations in FDI trends across industries may be
influenced by industry-specific regulatory frameworks, technology
advancements, and market conditions. Consequently, while the study aims to
shed light on overarching FDI patterns, it may not offer a granular examination
of the intricacies within each industry, which could require more specialized,
industry-specific research.These additional points highlight the complexities
and nuances associated with FDI data sources, as well as the broader context in
which FDI operates within the international business landscape. Understanding
these limitations is crucial for framing the study's findings accurately.

Data Source Limitations:

The reliance on secondary data sources, such as government reports and

databases, may limit the depth of analysis in this study. These sources are often
subject to potential limitations, including incomplete or outdated data,
discrepancies in reporting standards between countries, and variations in data
collection methods. As a result, the study's ability to provide a complete and
accurate portrayal of FDI trends may be constrained. Additionally, the
availability of granular data, especially for specific industries or sectors, can be
inconsistent, making it challenging to conduct a detailed analysis.

External Factors:

While the study strives to understand FDI trends comprehensively, it may not
fully account for the influence of external factors. Global economic crises,
political events, and shifts in international relations can significantly affect FDI
patterns. These external dynamics often operate independently of the variables
under investigation in this study and may introduce unpredictability into the
analysis. Recognizing these external factors as potential limitations underscores
the complexity of the FDI landscape.

Alternative Investments:

FDI is just one facet of international capital flows, and this study's focus on it
may inadvertently downplay the importance of alternative investment
mechanisms. Portfolio investment, for instance, involves the purchase of
financial assets, like stocks and bonds, across international markets. Mergers
and acquisitions, on the other hand, represent the acquisition of foreign
companies or assets by investors. Ignoring these alternative investments in the
context of FDI trends overlooks a broader picture of how capital moves

39
globally. Future research could explore the interplay and correlations between
FDI and these other investment forms to gain a more nuanced understanding of
international capital allocation strategies.

40
CHAPTER II

41
2. LITERATURE OF REVIEW

Foreign Direct Investment Trends

The study of Foreign Direct Investment (FDI) trends plays a pivotal role in
understanding the dynamics of international business. Researchers and
economists have conducted extensive investigations to uncover the factors
driving FDI flows and the patterns that emerge. In this section, we delve into the
insights provided by prominent scholars in the field.

Trends in FDI Flows

Dunning, J. H. (2016), in his renowned work "The Location of International

Business Activities: Implications for FDI Trends" observed that FDI trends are
influenced by a combination of location-specific advantages, ownership-specific
advantages, and internalization advantages. Dunning's eclectic paradigm, often
referred to as the OLI framework, has been widely adopted to analyze why and
where multinational enterprises invest.

Dunning (2016) highlighted the significance of host country factors such as

market size, natural resources, and political stability in attracting FDI. He
argued that understanding these factors is crucial for policymakers and investors
seeking to tap into the opportunities offered by global markets.

FDI Trends in Emerging Economies

Another significant contributor to the study of FDI trends in emerging

economies is UNCTAD (United Nations Conference on Trade and
Development). UNCTAD's "World Investment Report" (2019) is a valuable
resource that sheds light on the shifting landscape of FDI flows.

According to UNCTAD (2019), emerging economies have witnessed

substantial growth in FDI inflows, driven by factors such as rapid economic
expansion, rising consumer markets, and policy reforms aimed at attracting
foreign investors. The report emphasized that FDI trends are no longer
concentrated solely in developed countries; emerging markets are becoming
increasingly attractive destinations for investment.

42
UNCTAD's research further pointed out that the distribution of FDI across
industries within emerging economies is diverse. While manufacturing and
services sectors continue to draw substantial FDI, sectors such as technology, e-
commerce, and renewable energy have gained prominence in recent years.

Industry-Specific FDI Trends

A comprehensive analysis of FDI trends would be incomplete without

considering the nuances of different industries. Caves, R. E. (2017), in his work
"Multinational Enterprise and Economic Analysis," emphasized the importance
of industry-specific FDI trends.

Caves (2017) argued that industries exhibit varying degrees of

internationalization, with some sectors characterized by high FDI intensity due
to the need for global production and distribution networks. He highlighted that
industries such as automotive manufacturing, electronics, and pharmaceuticals
have consistently attracted substantial FDI due to their global supply chain
requirements and technological advancements.

Foreign Direct Investment Trends

Understanding the trends and patterns of Foreign Direct Investment (FDI) is

essential in the context of global business dynamics. In this section, we explore
the perspectives of several influential authors who have contributed to our
understanding of FDI trends.

The Role of Institutional Factors

North, D. C. (1990), in his seminal work "Institutions, Institutional Change and

Economic Performance," introduced the concept of institutions as a critical
determinant of FDI trends. North argued that the institutional framework of a
host country, including its legal, political, and economic institutions,
significantly influences FDI inflows.

North (1990) emphasized that countries with well-developed institutions that

protect property rights and ensure contract enforcement tend to attract more

43
FDI. His research has underscored the importance of institutional quality as a
key factor in understanding FDI trends and variations across regions.

FDI Trends in Emerging Markets

Khanna, T. and Paley, I. (2010) delved into the complexities of FDI trends in
emerging markets in their book "Winning in Emerging Markets: A Road Map
for Strategy and Execution." They argued that while emerging markets offer
substantial growth opportunities, they also present unique challenges for
multinational enterprises.

Khanna and Paley (2010) examined how FDI strategies in emerging markets
must consider factors such as cultural nuances, regulatory environments, and
local competition dynamics. Their work highlighted that successful FDI in
emerging markets requires a deep understanding of local contexts and the
ability to adapt strategies accordingly.

Technology and FDI Trends

Cantwell, J. (2019) explored the intersection of technology and FDI trends in

his book "Technological Innovation and Multinational Corporations." He
posited that the rapid advancement of technology has not only transformed
industries but also influenced the direction of FDI.Cantwell (2019) discussed
how technology-driven industries such as information technology,
biotechnology, and artificial intelligence have become focal points for FDI. He
argued that multinational corporations seeking to remain competitive in the
global market must strategically invest in technology-related sectors, leading to
shifts in FDI patterns.Understanding the interplay between technology and FDI
is crucial for businesses aiming to leverage innovation as a driver of
international expansion.Understanding industry-specific FDI trends is essential
for businesses and policymakers to tailor their strategies and policies to the
unique dynamics of each sector. Foreign Direct Investment (FDI) stands as a
pivotal force in shaping the contemporary global economic landscape. As
businesses transcend borders and governments seek to bolster their national
economies, the dynamics of FDI have assumed unprecedented significance.
This literature review embarks on a journey to explore the multifaceted realm of
FDI trends, weaving through the intricate tapestry of industries and regions. The

44
global marketplace is in constant flux, driven by technological revolutions,
shifts in consumer behavior, and evolving geopolitical landscapes. Against this
backdrop, FDI patterns manifest as a reflection of complex economic forces,
providing invaluable insights into where and why capital flows across
international boundaries.

The exploration of FDI trends in this review takes us beyond mere numbers and
statistics; it ventures into the very heart of economic strategy, international
competition, and policy formulation. In a world that is increasingly
interconnected, understanding the patterns and dynamics of FDI is essential for
businesses aspiring to expand their global footprint, for governments seeking to
attract investments and create jobs, and for researchers unraveling the
intricacies of international finance. The FDI landscape is akin to a puzzle, with
pieces that continuously shift and transform. Consequently, analyzing these
trends becomes an intellectual exercise that merges economics, geopolitics, and
sociology, offering a deeper comprehension of the forces that propel or hinder
economic growth.

The overarching aim of this literature review is to provide a comprehensive

overview of FDI trends, shedding light on their contours and nuances. It will
delve into the factors influencing FDI flows, examine the sectors that magnetize
capital, and navigate the regions that emerge as magnets for foreign
investments. This review also acknowledges the gaps in current research,
beckoning towards future areas of exploration. In essence, it is a voyage through
the ebbs and flows of international capital, striving to decipher the patterns that
govern our global economy, and serving as a compass for businesses and
policymakers navigating the intricate world of international investments.

Foreign Direct Investment (FDI) trends across different industries represent a

complex interplay of economic, technological, and geopolitical factors.
Understanding these trends is crucial for stakeholders, as they often indicate
where businesses are choosing to allocate their resources and capital.

One prominent trend in recent years has been the surge in FDI within the
technology and innovation sector. The rapid pace of technological advancement
and the digitization of industries have created a fertile ground for foreign
investors. Major global technology hubs, such as Silicon Valley in the United

45
States and tech clusters in China and India, have attracted substantial FDI due to
their potential for innovation and high growth. Tech giants often establish
research and development centers in these regions to tap into local talent and
expertise.

Manufacturing industries have also seen significant FDI inflows. Traditional

sectors such as automotive and electronics continue to be attractive destinations
for foreign investors. This is partly because of cost efficiency and the benefits of
global supply chain integration. Companies seek to optimize production costs
and gain access to diverse markets through strategic investments in
manufacturing facilities worldwide. Additionally, advancements in automation
and robotics are reshaping the manufacturing landscape, making it even more
appealing to foreign investors looking to capitalize on efficiency gains.

In the services sector, encompassing finance, healthcare, and hospitality, FDI

inflows have been driven by the liberalization of services markets and growing
consumer demands. Financial services, for instance, have attracted substantial
foreign investment due to the expansion of financial markets and the rise of
fintech startups. Investments in healthcare infrastructure have surged in
response to aging populations and increased healthcare needs, with foreign
investors eyeing opportunities in pharmaceuticals, medical technology, and
healthcare services.

Natural resource industries, including energy and mining, continue to be

significant recipients of FDI, particularly in resource-rich countries. These
sectors play a pivotal role in supplying the world's growing energy and raw
material needs. Foreign investors, often multinational corporations with
expertise in resource extraction, are drawn by the potential for substantial
returns, despite the inherent risks associated with commodity price fluctuations
and geopolitical factors.

Moreover, renewable energy and sustainable industries are emerging as new

frontiers for FDI. The global shift towards environmental sustainability and the
reduction of carbon emissions have led to increased investments in renewable
energy sources like wind, solar, and hydroelectric power. Sustainable practices
and technologies are gaining prominence, attracting foreign capital from
environmentally-conscious investors.FDI trends by industry reflect the evolving

46
landscape of global business. The technology sector drives innovation,
manufacturing remains essential for global supply chains, services cater to
changing consumer demands, and natural resources sustain economic
development. Emerging industries related to sustainability are also capturing the
attention of foreign investors as the world seeks more environmentally
responsible solutions. These trends underscore the dynamic nature of FDI,
driven by ever-changing economic, technological, and environmental factors.

Foreign Direct Investment (FDI) trends exhibit distinctive patterns when

analyzed across different regions of the world. These regional variations are
influenced by a complex interplay of economic, political, and social factors.
Understanding these trends is crucial for investors, multinational corporations,
and policymakers seeking to navigate the global landscape effectively.

In the Asia-Pacific region, FDI has experienced remarkable growth, driven

primarily by the meteoric rise of China and India as economic powerhouses.
China, in particular, has been a magnet for FDI due to its large consumer
market, low-cost labor force, and strategic infrastructure investments. India,
with its expanding middle class and pro-business reforms, has also attracted
significant investment across various sectors.

Southeast Asian countries, collectively known as ASEAN (Association of

Southeast Asian Nations), have seen a surge in FDI as well. Their strategic
location, improving infrastructure, and efforts to harmonize trade policies
within the region have made them a hub for multinational corporations looking
to establish regional production bases.

Moving to North America, the United States and Canada continue to be prime
destinations for FDI. The United States, with its vast consumer market and
dynamic innovation ecosystem, remains an attractive location for foreign
investors. Canada's stable political environment, rich natural resources, and
strong financial sector make it an appealing choice for FDI, particularly in the
energy and manufacturing sectors.

In Europe, Western European countries have traditionally been the preferred

destinations for FDI due to their well-established markets, advanced
infrastructure, and skilled workforce. However, Central and Eastern European

47
countries have been gaining prominence, offering lower production costs and
access to the European Union market. These countries have actively pursued
policies to attract FDI, resulting in increased investment in sectors like
automotive manufacturing, information technology, and shared services.

Turning to Latin America, countries like Brazil, Mexico, and Chile have been
FDI hotspots, attracting investments in industries such as energy, agriculture,
and telecommunications. Brazil, as one of the largest economies in the region,
has been the recipient of substantial FDI, driven by its natural resources and
growing consumer class. Mexico's strategic location and participation in various
trade agreements have made it an essential link in North American supply
chains.

In Africa, FDI has been on the rise, reflecting the continent's growing middle
class, abundant natural resources, and efforts to improve infrastructure and
governance. Several African countries, including Nigeria, Kenya, and South
Africa, have attracted FDI in sectors such as telecommunications, energy, and
retail. China's Belt and Road Initiative has also fueled investments in
infrastructure projects across the continent.

These regional FDI trends underscore the importance of tailoring investment

strategies to specific market conditions. Multinational corporations must
consider the unique opportunities and challenges presented by each region,
including factors like market size, political stability, regulatory environments,
and cultural nuances. Additionally, understanding how global supply chains
intersect with regional FDI trends is crucial for optimizing production and
distribution networks on a global scale.

As we delve deeper into our analysis of FDI trends, we will examine these
regional dynamics in greater detail, shedding light on the factors that shape
investment decisions and their implications for international business strategies.

Factors Influencing FDI Trends

The patterns and trends of FDI are shaped by a complex interplay of various
factors, which can broadly be categorized into economic, political, and strategic
considerations. Understanding these factors is crucial for businesses,

48
governments, and investors seeking to make informed decisions in the global
market.

Economic factors play a pivotal role in driving FDI trends. One of the primary
economic drivers is the policy and regulatory environment of a country.
Countries that offer a favorable investment climate through measures such as
tax incentives, streamlined bureaucratic procedures, and protection of
intellectual property rights tend to attract more FDI. Investors seek legal and
institutional frameworks that provide stability and predictability, reducing
investment risk. Furthermore, currency stability and convertibility are essential
economic factors, as fluctuations and restrictions in currency exchange can
deter FDI.

Market access is another critical economic factor influencing FDI trends.

Companies are naturally drawn to markets with large and growing consumer
bases. Emerging economies with rising middle-class populations often become
magnets for FDI, as they represent vast untapped markets. The potential for
increased sales and profits drives investments in these regions. Additionally,
countries that liberalize their markets and reduce trade barriers create more
opportunities for FDI, particularly in sectors where globalization and market
access are vital.

The integration of countries into global supply chains is a significant economic

factor promoting FDI. In industries reliant on complex supply networks,
companies strategically invest in locations that allow them to participate in
these global value chains efficiently. This is especially relevant in
manufacturing, where the production process often spans multiple countries.
FDI in these cases is driven by cost-efficiency, logistics advantages, and access
to specialized skills.

Political factors are equally influential in determining FDI trends. Political

stability is a fundamental consideration for investors. Countries with stable
political climates are less prone to abrupt policy changes, nationalization, and
other disruptions that can negatively impact investments. Investors often
conduct risk assessments based on a country's political environment to evaluate
the safety of their investments. the level of corruption and transparency in a
country's governance can significantly affect FDI trends. Low levels of

49
corruption and high levels of transparency provide greater confidence to
investors. Predictable regulatory environments, where contracts are enforceable
and disputes are resolved fairly, are crucial for attracting FDI.

Strategic factors also come into play in shaping FDI trends. These factors
include a company's strategic goals and objectives. FDI decisions are often
driven by a firm's desire to access specific resources, technologies, or
capabilities that may not be available domestically. Companies may invest
abroad to secure access to critical inputs, leverage foreign expertise, or expand
their global footprint. Additionally, market-seeking FDI is strategic in the sense
that companies aim to establish a presence in markets with high growth
potential and where their products or services align with local demand. the
trends and patterns of FDI are the result of a multifaceted interplay of economic,
political, and strategic factors. The decision to invest in a foreign market is a
complex one, influenced by a combination of factors that vary by industry,
region, and individual company objectives. A comprehensive understanding of
these factors is essential for governments and businesses seeking to attract and
benefit from FDI.

"Gaps in the Literature:

While the existing body of literature on Foreign Direct Investment (FDI) trends
provides a comprehensive overview of the subject, there are notable gaps that
remain to be addressed. Firstly, the impact of rapidly evolving technologies,
such as artificial intelligence, blockchain, and the Internet of Things, on FDI
patterns warrants further investigation. These technologies have the potential to
disrupt industries and global supply chains, reshaping the landscape of FDI.
Understanding how technology-driven disruptions influence investment
decisions, sector preferences, and regional allocations is crucial in an
increasingly digitized world.

Secondly, the sustainability and environmental considerations in FDI are

emerging as critical factors. As the global community grapples with climate
change and environmental degradation, there is a growing need to assess how
FDI practices align with sustainable development goals. Research that examines
the environmental impact of FDI activities, the adoption of green technologies,
and corporate social responsibility practices among multinational corporations

50
can offer insights into the evolving nature of FDI in a world increasingly
focused on sustainability.

Additionally, the literature would benefit from a deeper exploration of the

effects of geopolitical tensions and trade disputes on FDI trends. Recent events
have highlighted the vulnerability of global supply chains to political instability,
trade barriers, and protectionist measures. Investigating how these factors
influence the strategic decisions of multinational corporations and the
attractiveness of certain regions for FDI can shed light on the
interconnectedness of geopolitics and global investment.

Furthermore, there is an opportunity for research to delve into the role of

regional economic integration and trade agreements in shaping FDI trends. As
countries seek to strengthen economic ties through agreements such as the
Comprehensive and Progressive Agreement for Trans-Pacific Partnership
(CPTPP) and the African Continental Free Trade Area (AfCFTA), it becomes
pertinent to assess how these agreements impact investment flows, market
access, and the preferences of investors.

Lastly, the COVID-19 pandemic has brought unforeseen disruptions to global

business operations. The literature has yet to comprehensively analyze the
pandemic's long-term effects on FDI patterns, including the resilience of certain
industries, the rise of digitalization, and changes in investment strategies in
response to the pandemic-induced economic uncertainties. while the current
literature provides valuable insights into FDI trends, these gaps underscore the
evolving nature of global investment dynamics. Addressing these areas of
research can contribute to a more comprehensive understanding of how FDI
adapts to technological advancements, sustainability imperatives, geopolitical
shifts, trade dynamics, and global crises."

51
CHAPTER III

52
3. COMPANIES PROFILE

I. APPLE INC .

Type Public
Trade name AAPL
Traded as Nasdaq :AAPL
Nasdaq-100
DJIA
S&P 100
S&P 500
ISIN US0378331005
Industry Consumer electronics
Software Services
Online Services
Founded April 1 , 1976
Founders Steve Jobs
Steve Wozniak
Ronald Wayne
Headquarters 1Apple Park ,Way US
Key People Arthur D. Levinson
Luca Maestri
Tim Cook
Products ● AirPods
● Apple watch
● Ipad
● iPhone
● Mac
Revenue US$394 billion (2023)
Operating income US$119.44 billion (2023)
Net income US$99.80 billion (2023)
Total assets US$352.76 billion (2023)
Total equity US$50.65 billion (2023)
Area Served Worldwide
Number Of employees 164,000 (june 2023)
Rating S&P BBB-/ A-3/

53
 Type Public
Website www.apple.com

Foreign Direct Investment (FDI) Trends in Apple Inc.:

Apple Inc. has been a prominent player in the FDI landscape due to its complex
global supply chain, manufacturing strategy, and expansion into various
markets. Here are key FDI trends associated with Apple:

1. Manufacturing Footprint:
- Apple's FDI trends are heavily influenced by its manufacturing operations,
particularly in China. The company has strategically invested in manufacturing
facilities and formed partnerships with prominent Chinese manufacturers like
Foxconn (Hon Hai Precision Industry Co., Ltd.). These investments have
resulted in the creation of massive manufacturing hubs in China, particularly in
cities like Shenzhen and Zhengzhou.

- China's skilled labor force, efficient production capabilities, and proximity to

component suppliers have made it a focal point for Apple's FDI. This not only
facilitates cost-effective production but also supports rapid product development
and delivery.

2. Research and Development (R&D):

- Apple conducts extensive research and development activities worldwide. Its
FDI in R&D centers reflects its commitment to innovation. Notable locations
include Cupertino (Apple's headquarters), Israel, Germany, and the United
Kingdom. These investments have allowed Apple to tap into diverse talent
pools and technological expertise.

- The acquisition of foreign companies specializing in areas such as artificial

intelligence, augmented reality, and semiconductor technology has also been
part of Apple's FDI strategy to enhance its product offerings.

3. Retail Expansion:
- Apple's iconic retail stores are another aspect of its FDI strategy. These
stores serve as showcases for its products and provide a unique customer
experience. Apple's retail footprint extends to various countries, attracting FDI
to support the construction and operation of these stores.

54
 - Additionally, Apple has made investments in its supply chain infrastructure,
including data centers and distribution centers, to ensure efficient operations
and meet growing global demand.

4. Emerging Markets:
- Apple's expansion into emerging markets has been a notable FDI trend.
Recognizing the potential in markets like India and Brazil, Apple has increased
its investment in marketing, distribution, and localized product offerings to cater
to the needs of these regions.

- These strategic investments aim to tap into the rising middle-class

populations and increasing consumer purchasing power in emerging economies.

5. Sustainability and Renewable Energy:

- Beyond its core business, Apple has made substantial FDI in sustainability
and renewable energy. The company has invested in solar and wind energy
projects in various countries, such as the United States and China, as part of its
commitment to achieving carbon neutrality across its operations.

- These sustainability-related investments not only align with global

environmental goals but also contribute to FDI trends in green technology and
renewable energy.

Apple's FDI trends illustrate how a multinational corporation with a global

customer base can strategically invest in manufacturing, R&D, retail, and
sustainability to maintain its competitive edge and expand its footprint in
diverse markets. These trends have significant implications for the global
economy and the technology industry, showcasing Apple's role as a key driver
of FDI patterns in the 21st century.

Global Presence of Apple Inc.:

Apple Inc. boasts one of the most extensive and influential global presences
among all technology companies. Its reach spans continents, and the company
has strategically positioned itself in key markets worldwide. Here are some key
aspects of Apple's global presence:

55
Retail Stores:
Apple's retail stores are iconic and have become a vital component of its global
presence strategy. As of my last knowledge update in September 2021, Apple
had over 500 retail stores in more than 25 countries. These sleek and modern
stores not only serve as sales outlets but also as hubs for customer engagement,
technical support, and product education. Apple's flagship stores, such as the
Apple Store on Fifth Avenue in New York City, have become landmarks in
their own right, drawing tourists and tech enthusiasts alike.

Market Expansion:
Apple has continuously expanded into new markets to tap into a diverse range
of consumers. While North America and Europe have historically been its
primary markets, the company has made significant strides in Asia, particularly
in China and India. The Chinese market, in particular, has been a focus of
Apple's global expansion efforts, with the company opening more stores and
tailoring products to meet local preferences.

Localization:
Apple is known for its commitment to localization, which involves adapting its
products and services to suit regional preferences and languages. This approach
allows Apple to provide a seamless user experience for customers around the
world. For example, iOS and macOS are available in numerous languages, and
the company offers keyboards and input methods customized for different
regions.

App Store and Services:

Apple's App Store is accessible in over 175 countries, making it a global
platform for app developers to reach a vast audience. The company's services,
such as Apple Music, Apple TV+, and iCloud, are available in numerous
countries, with content often localized to cater to regional tastes. This global
reach has turned Apple into a major player in the digital services industry.

Investments in Data Centers:

To support its growing ecosystem of online services, Apple has made
substantial investments in data centers around the world. These data centers are
strategically located to ensure the smooth delivery of services such as iCloud,

56
iMessage, and the App Store to users globally. Apple has data centers in the
United States, Denmark, Ireland, and other locations.

Environmental Initiatives:
Apple's global presence also extends to its commitment to sustainability. The
company has announced plans to make its entire supply chain and product life
cycle carbon neutral by 2030. This includes its manufacturing operations in
various countries and the adoption of renewable energy sources for its data
centers worldwide. These sustainability efforts have garnered attention and
support from environmental organizations and governments globally., Apple
Inc.'s global presence is a testament to its status as a truly multinational
corporation. Its retail stores, product availability, localization efforts, and
commitment to sustainability showcase the company's dedication to serving
customers and making a positive impact on a global scale. Please note that the
specifics of Apple's global presence may have evolved since my last update in
September 2021, so it's advisable to refer to the latest reports and company
announcements for the most current information.

History

1976–1980: Founding and incorporation

In 1976 Steve Jobs co-founded Apple in his parents' home on Crist Drive in Los
Altos California. Although it is widely believed that the company was founded
in the house's garage Apple co-founder Steve Wozniak called it "a bit of a
myth". Jobs and Wozniak did however move some operations to the garage
when the bedroom became too crowded.

Apple's first product the Apple I designed by Steve Wozniak was sold as an
assembled circuit board and lacked basic features such as a keyboard monitor
and case. The owner of this unit added a keyboard and wooden case.

The Apple II Plus introduced in 1979 designed primarily by Wozniak

Apple Computer Company was founded on April 1 1976 by Steve Jobs Steve
Wozniak and Ronald Wayne as a partnership. The company's first product was
the Apple I a computer designed and hand-built entirely by Wozniak. To
finance its creation Jobs sold his Volkswagen Bus and Wozniak sold his HP-65

57
calculator.: 57 Wozniak debuted the first prototype Apple I at the Homebrew
Computer Club in July 1976. The Apple I was sold as a motherboard with CPU
RAM and basic textual-video chips—a base kit concept which would not yet be
marketed as a complete personal computer. It went on sale soon after debut for
US$666.66 (equivalent to $3428 in 2022).: 180 Wozniak later said he was
unaware of the coincidental mark of the beast in the number 666 and that he
came up with the price because he liked "repeating digits".

Apple Computer Inc. was incorporated on January 3 1977 without Wayne who
had left and sold his share of the company back to Jobs and Wozniak for $800
only twelve days after having co-founded Apple. Multimillionaire Mike
Markkula provided essential business expertise and funding of US$250000
(equivalent to $1207304 in 2022) to Jobs and Wozniak during the incorporation
of Apple. During the first five years of operations revenues grew exponentially
doubling about every four months. Between September 1977 and September
1980 yearly sales grew from $775000 to $118 million an average annual growth
rate of 533%.

The Apple II also invented by Wozniak was introduced on April 16 1977 at the
first West Coast Computer Faire. It differed from its major rivals the TRS-80
and Commodore PET because of its character cell-based color graphics and
open architecture. While the Apple I and early Apple II models used ordinary
audio cassette tapes as storage devices they were superseded by the introduction
of a 5+1⁄4-inch floppy disk drive and interface called the Disk II in 1978.

The Apple II was chosen to be the desktop platform for the first "killer
application" of the business world: VisiCalc a spreadsheet program released in
1979. VisiCalc created a business market for the Apple II and gave home users
an additional reason to buy an Apple II: compatibility with the office but Apple
II market share remained behind home computers made by competitors such as
Atari Commodore and Tandy.

On December 12 1980 Apple (ticker symbol "AAPL") went public selling 4.6
million shares at $22 per share ($.10 per share when adjusting for stock splits as
of September 3 2022) generating over $100 million which was more capital
than any IPO since Ford Motor Company in 1956. By the end of the day 300

58
millionaires were created from a stock price of $29 per share and a market cap
of $1.778 billion.

1980–1990: Success with Macintosh

The Macintosh released in 1984 is the first mass-market personal computer to

feature an integral graphical user interface and mouse.
A critical moment in the company's history came in December 1979 when Jobs
and several Apple employees including human–computer interface expert Jef
Raskin visited Xerox PARC in to see a demonstration of the Xerox Alto a
computer using a graphical user interface. Xerox granted Apple engineers three
days of access to the PARC facilities in return for the option to buy 100000
shares (22.4 million split-adjusted shares as of September 3 2022) of Apple at
the pre-IPO price of $10 a share. After the demonstration Jobs was immediately
convinced that all future computers would use a graphical user interface and
development of a GUI began for the Apple Lisa named after Jobs's daughter.

The Lisa division would be plagued by infighting and in 1982 Jobs was pushed
off the project. The Lisa launched in 1983 and became the first personal
computer sold to the public with a GUI but was a commercial failure due to its
high price and limited software titles.

Jobs angered by being pushed off the Lisa team took over the company's
Macintosh division. Wozniak and Raskin had envisioned the Macintosh as a
low-cost computer with a text-based interface like the Apple II but a plane crash
in 1981 forced Wozniak to step back from the project. Jobs quickly redefined
the Macintosh as a graphical system that would be cheaper than the Lisa
undercutting his former division. Jobs was also hostile to the Apple II division
which at the time generated most of the company's revenue.

In 1984 Apple launched the Macintosh the first personal computer to be sold
without a programming language. Its debut was signified by "1984" a $1.5
million television advertisement directed by Ridley Scott that aired during the
third quarter of Super Bowl XVIII on January 22 1984. This is now hailed as a
watershed event for Apple's success and was called a "masterpiece" by CNN
and one of the greatest TV advertisements of all time by TV Guide.

59
The advertisement created great interest in the original Macintosh and sales
were initially good but began to taper off dramatically after the first three
months as reviews started to come in. Jobs had made the decision to equip the
original Macintosh with 128 kilobytes of RAM attempting to reach a US$1000
(equivalent to $2817 in 2022) price point which limited its speed and the
software that could be used. The Macintosh would eventually ship for US$2495
(equivalent to $7028 in 2022) a price panned by critics in light of its slow
performance.: 195 In early 1985 this sales slump triggered a power struggle
between Steve Jobs and CEO John Sculley who had been hired away from
Pepsi two years earlier by Jobs saying "Do you want to sell sugar water for the
rest of your life or come with me and change the world?" Sculley decided to
remove Jobs as the head of the Macintosh division with unanimous support
from the Apple board of directors.

The board of directors instructed Sculley to contain Jobs and his ability to
launch expensive forays into untested products. Rather than submit to Sculley's
direction Jobs attempted to oust him from his leadership role at Apple. Informed
by Jean-Louis Gassée Sculley found out that Jobs had been attempting to
organize a boardroom coup and called an emergency meeting at which Apple's
executive staff sided with Sculley and stripped Jobs of all operational duties.
Jobs resigned from Apple in September 1985 and took a number of Apple
employees with him to found NeXT. Wozniak had also quit his active
employment at Apple earlier in 1985 to pursue other ventures expressing his
frustration with Apple's treatment of the Apple II division and stating that the
company had "been going in the wrong direction for the last five years." Despite
Wozniak's grievances he officially remained employed by Apple and to this day
continues to work for the company as a representative receiving a stipend
estimated to be $120000 per year for this role. Both Jobs and Wozniak remained
Apple shareholders after their departures.

After the departures of Jobs and Wozniak Sculley worked to improve the
Macintosh in 1985 by quadrupling the RAM and introducing the LaserWriter
the first reasonably priced PostScript laser printer. PageMaker an early desktop
publishing application taking advantage of the PostScript language was also
released by Aldus Corporation in July 1985. It has been suggested that the
combination of Macintosh LaserWriter and PageMaker was responsible for the
creation of the desktop publishing market.

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This dominant position in the desktop publishing market allowed the company
to focus on higher price points the so-called "high-right policy" named for the
position on a chart of price vs. profits. Newer models selling at higher price
points offered higher profit margin and appeared to have no effect on total sales
as power users snapped up every increase in speed. Although some worried
about pricing themselves out of the market the high-right policy was in full
force by the mid-1980s notably due to Jean-Louis Gassée's mantra of "fifty-five
or die" referring to the 55% profit margins of the Macintosh II.: 79–80

This policy began to backfire in the last years of the decade as desktop
publishing programs appeared on PC clones that offered some or much of the
same functionality of the Macintosh but at far lower price points. The company
lost its dominant position in the desktop publishing market and estranged many
of its original consumer customer base who could no longer afford their high-
priced products. The Christmas season of 1989 was the first in the company's
history to have declining sales which led to a 20% drop in Apple's stock price.:
117–129 During this period the relationship between Sculley and Gassée
deteriorated leading Sculley to effectively demote Gassée in January 1990 by
appointing Michael Spindler as the chief operating officer. Gassée left the
company later that year.

1990–1997: Decline and restructuring

The company pivoted strategy and in October 1990 introduced three lower-cost
models the Macintosh Classic the Macintosh LC and the Macintosh IIsi all of
which saw significant sales due to pent-up demand. In 1991 Apple introduced
the hugely successful PowerBook with a design that set the current shape for
almost all modern laptops. The same year Apple introduced System 7 a major
upgrade to the Macintosh operating system adding color to the interface and
introducing new networking capabilities. The success of the lower-cost Macs
and PowerBook brought increasing revenue. For some time Apple was doing
incredibly well introducing fresh new products and generating increasing profits
in the process. The magazine MacAddict named the period between 1989 and
1991 as the "first golden age" of the Macintosh.

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The PenLite is Apple's first prototype of a tablet computer. Created in 1992 the
project was designed to bring the Mac OS to a tablet – but was canceled in favor
of the Newton.The success of Apple's lower-cost consumer models especially
the LC also led to the cannibalization of their higher-priced machines. To
address this management introduced several new brands selling largely identical
machines at different price points aimed at different markets: the high-end
Quadra models the mid-range Centris line and the consumer-marketed Performa
series. This led to significant market confusion as customers did not understand
the difference between models.

The early 1990s also saw the discontinuation of the Apple II series which was
expensive to produce and the company felt was still taking sales away from
lower-cost Macintosh models. After the launch of the LC Apple began
encouraging developers to create applications for Macintosh rather than Apple
II and authorized salespersons to direct consumers towards Macintosh and away
from Apple II. The Apple IIe was discontinued in 1993. Throughout this period
Microsoft continued to gain market share with its Windows graphical user
interface that it sold to manufacturers of generally less expensive PC clones.
While the Macintosh was more expensive it offered a more tightly integrated
user experience but the company struggled to make the case to
consumers.Apple also experimented with a number of other unsuccessful
consumer targeted products during the 1990s including digital cameras portable
CD audio players speakers video game consoles the eWorld online service and
TV appliances. Most notably enormous resources were invested in the problem-
plagued Newton tablet division based on John Sculley's unrealistic market
forecasts. Throughout this period Microsoft continued to gain market share with
Windows by focusing on delivering software to inexpensive personal computers
while Apple was delivering a richly engineered but expensive experience.
Apple relied on high profit margins and never developed a clear response;
instead they sued Microsoft for using a GUI similar to the Apple Lisa in Apple
Computer Inc. v. Microsoft Corp. The lawsuit dragged on for years before it
was finally dismissed.The major product flops and the rapid loss of market
share to Windows sullied Apple's reputation and in 1993 Sculley was replaced
as CEO by Michael Spindler.

With Spindler at the helm Apple IBM and Motorola formed the AIM alliance in
1994 with the goal of creating a new computing platform (the PowerPC

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Reference Platform; PReP) which would use IBM and Motorola hardware
coupled with Apple software. The AIM alliance hoped that PReP's performance
and Apple's software would leave the PC far behind and thus counter the
dominance of Windows. The same year Apple introduced the Power Macintosh
the first of many Apple computers to use Motorola's PowerPC processor.

In the wake of the alliance Apple opened up to the idea of allowing Motorola
and other companies to build Macintosh clones. Over the next two years 75
distinct Macintosh clone models were introduced. However by 1996 Apple
executives were worried that the clones were cannibalizing sales of their own
high-end computers where profit margins were highest.In 1996 Spindler was
replaced by Gil Amelio as CEO. Hired for his reputation as a corporate
rehabilitator Amelio made deep changes including extensive layoffs and cost-
cutting period was also marked by numerous failed attempts to modernize the
Macintosh operating system (MacOS). The original Macintosh operating system
(System 1) was not built for multitasking (running several applications at once).
The company attempted to correct this with by introducing cooperative
multitasking in System 5 but the company still felt it needed a more modern
approach. This led to the Pink project in 1988 A/UX that same year Copland in
1994 and the attempted purchase of BeOS in 1996. Talks with Be stalled when
the CEO former Apple executive Jean-Louis Gassée demanded $300 million
instead of the $125 million Apple wanted to pay.

Only weeks away from bankruptcy Apple's board decided NeXTSTEP was a
better choice for its next operating system and purchased NeXT in late 1996 for
$400 million bringing back Apple co-founder Steve Jobs. 1997–2007: Return to
profitability The NeXT acquisition was finalized on February 9 1997 and the
board brought Jobs back to Apple as an advisor. On July 9 1997 Jobs staged a
boardroom coup that resulted in Amelio's resignation after overseeing a three-
year record-low stock price and crippling financial losses.

The board named Jobs as interim CEO and he immediately began a review of
the company's products. Jobs would order 70% of the company's products to be
cancelled resulting in the loss of 3000 jobs and taking Apple back to the core of
its computer offerings. The next month in August 1997 Steve Jobs convinced
Microsoft to make a $150 million investment in Apple and a commitment to
continue developing software for the Mac. The investment was seen as an

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"antitrust insurance policy" for Microsoft who had recently settled with the
Department of Justice over anti-competitive practices. Jobs also ended the Mac
clone deals and in September 1997 purchased the largest clone maker Power
Computing. On November 10 1997 Apple introduced the Apple Store website
which was tied to a new build-to-order manufacturing that had been
successfully used by PC manufacturer Dell.

On May 6 1998 Apple introduced a new all-in-one computer reminiscent of the

original Macintosh: the iMac. The iMac was a huge success for Apple selling
800000 units in its first five months and ushered in major shifts in the industry
by abandoning legacy technologies like the 3+1⁄2-inch diskette being an early
adopter of the USB connector and coming pre-installed with internet
connectivity (the "i" in iMac) via Ethernet and a dial-up modem. The device
also had a striking teardrop shape and translucent materials designed by
Jonathan Ive who although hired by Amelio would go on to work
collaboratively with Jobs for the next decade to chart a new course the design of
Apple's products.

A little more than a year later on July 21 1999 Apple introduced the iBook a
laptop for consumers. It was the culmination of a strategy established by Jobs to
produce only four products: refined versions of the Power Macintosh G3
desktop and PowerBook G3 laptop for professionals along with the iMac
desktop and iBook laptop for consumers. Jobs felt the small product line
allowed for a greater focus on quality and innovation.

At around the same time Apple also completed numerous acquisitions to create
a portfolio of digital media production software for both professionals and
consumers. Apple acquired of Macromedia's Key Grip digital video editing
software project which was renamed Final Cut Pro when it was launched on the
retail market in April 1999. The development of Key Grip also led to Apple's
release of the consumer video-editing product iMovie in October 1999. Next
Apple successfully acquired the German company Astarte in April 2000 which
had developed the DVD authoring software DVDirector which Apple would
sell as the professional-oriented DVD Studio Pro software product and used the
same technology to create iDVD for the consumer market. In 2000 Apple
purchased the SoundJam MP audio player software from Casady & Greene.

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Apple renamed the program iTunes while simplifying the user interface and
adding the ability to burn CDs.

2001 would be a pivotal year for the Apple with the company making three
announcements that would change the course of the company.

The first announcement came on March 24 2001 that Apple was nearly ready to
release a new modern operating system Mac OS X. The announcement came
after numerous failed attempts in the early 1990s and several years of
development. Mac OS X was based on NeXTSTEP OPENSTEP and BSD Unix
with Apple aiming to combine the stability reliability and security of Unix with
the ease of use afforded by an overhauled user interface heavily influenced by
NeXTSTEP. To aid users in migrating from Mac OS 9 the new operating
system allowed the use of OS 9 applications within Mac OS X via the Classic
Environment.

In May 2001 the company opened its first two Apple Store retail locations in
Virginia and California offering an improved presentation of the company's
products. At the time many speculated that the stores would fail but they went
on to become highly successful and the first of more than 500 stores around the
world.

On October 23 2001 Apple debuted the iPod portable digital audio player. The
product which was first sold on November 10 2001 was phenomenally
successful with over 100 million units sold within six years.

In 2003 Apple's iTunes Store was introduced. The service offered music
downloads for 99¢ a song and integration with the iPod. The iTunes Store
quickly became the market leader in online music services with over five billion
downloads by June 19 2008. Two years later the iTunes Store was the world's
largest music retailer.

In 2002 Apple purchased Nothing Real for their advanced digital compositing
application Shake as well as Emagic for the music productivity application
Logic. The purchase of Emagic made Apple the first computer manufacturer to
own a music software company. The acquisition was followed by the

65
development of Apple's consumer-level GarageBand application. The release of
iPhoto in the same year completed the iLife suite.

The MacBook Pro Apple's first laptop with an Intel microprocessor introduced
in 2006
At the Worldwide Developers Conference keynote address on June 6 2005 Jobs
announced that Apple would move away from PowerPC processors and the
Mac would transition to Intel processors in 2006. On January 10 2006 the new
MacBook Pro and iMac became the first Apple computers to use Intel's Core
Duo CPU. By August 7 2006 Apple made the transition to Intel chips for the
entire Mac product line—over one year sooner than announced. The Power Mac
iBook and PowerBook brands were retired during the transition; the Mac Pro
MacBook and MacBook Pro became their respective successors. On April 29
2009 The Wall Street Journal reported that Apple was building its own team of
engineers to design microchips. Apple also introduced Boot Camp in 2006 to
help users install Windows XP or Windows Vista on their Intel Macs alongside
Mac OS X.

Apple's success during this period was evident in its stock price. Between early
2003 and 2006 the price of Apple's stock increased more than tenfold from
around $6 per share (split-adjusted) to over $80. When Apple surpassed Dell's
market cap in January 2006 Jobs sent an email to Apple employees saying
Dell's CEO Michael Dell should eat his words. Nine years prior Dell had said
that if he ran Apple he would "shut it down and give the money back to the
shareholders".

2007–2011: Success with mobile devices

Newly announced iPhone on display at the 2007 MacWorld Expo

During his keynote speech at the Macworld Expo on January 9 2007 Jobs
announced that Apple Computer Inc. would thereafter be known as "Apple Inc."
because the company had shifted its emphasis from computers to consumer
electronics. This event also saw the announcement of the iPhone and the Apple
TV. The company sold 270000 iPhone units during the first 30 hours of sales
and the device was called "a game changer for the industry".

66
In an article posted on Apple's website on February 6 2007 Jobs wrote that
Apple would be willing to sell music on the iTunes Store without digital rights
management (DRM) thereby allowing tracks to be played on third-party players
if record labels would agree to drop the technology. On April 2 2007 Apple and
EMI jointly announced the removal of DRM technology from EMI's catalog in
the iTunes Store effective in May 2007. Other record labels eventually followed
suit and Apple published a press release in January 2009 to announce that all
songs on the iTunes Store are available without their FairPlay DRM.

In July 2008 Apple launched the App Store to sell third-party applications for
the iPhone and iPod Touch. Within a month the store sold 60 million
applications and registered an average daily revenue of $1 million with Jobs
speculating in August 2008 that the App Store could become a billion-dollar
business for Apple. By October 2008 Apple was the third-largest mobile
handset supplier in the world due to the popularity of the iPhone.

On January 14 2009 Jobs announced in an internal memo that he would be

taking a six-month medical leave of absence from Apple until the end of June
2009 and would spend the time focusing on his health. In the email Jobs stated
that "the curiosity over my personal health continues to be a distraction not only
for me and my family but everyone else at Apple as well" and explained that the
break would allow the company "to focus on delivering extraordinary products".
Though Jobs was absent Apple recorded its best non-holiday quarter (Q1 FY
2009) during the recession with revenue of $8.16 billion and profit of $1.21
billion.

After years of speculation and multiple rumored "leaks" Apple unveiled a large
screen tablet-like media device known as the iPad on January 27 2010. The iPad
ran the same touch-based operating system as the iPhone and all iPhone apps
were compatible with the iPad. This gave the iPad a large app catalog on launch
though having very little development time before the release. Later that year on
April 3 2010 the iPad was launched in the U.S. It sold more than 300000 units
on its first day and 500000 by the end of the first week. In May of the same year
Apple's market cap exceeded that of competitor Microsoft for the first time
since 1989.

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In June 2010 Apple released the iPhone 4 which introduced video calling using
FaceTime multitasking and a new uninsulated stainless steel design that acted as
the phone's antenna. Later that year Apple again refreshed its iPod line of MP3
players by introducing a multi-touch iPod Nano an iPod Touch with FaceTime
and an iPod Shuffle that brought back the clickwheel buttons of earlier
generations. It also introduced the smaller cheaper second generation Apple TV
which allowed renting of movies and shows.

On January 17 2011 Jobs announced in an internal Apple memo that he would

take another medical leave of absence for an indefinite period to allow him to
focus on his health. Chief operating officer Tim Cook assumed Jobs's day-to-
day operations at Apple although Jobs would still remain "involved in major
strategic decisions". Apple became the most valuable consumer-facing brand in
the world. In June 2011 Jobs surprisingly took the stage and unveiled iCloud an
online storage and syncing service for music photos files and software which
replaced MobileMe Apple's previous attempt at content syncing. This would be
the last product launch Jobs would attend before his death.

On August 24 2011 Jobs resigned his position as CEO of Apple. He was

replaced by Cook and Jobs became Apple's chairman. Apple did not have a
chairman at the time and instead had two co-lead directors Andrea Jung and
Arthur D. Levinson who continued with those titles until Levinson replaced
Jobs as chairman of the board in November after Jobs' death.

2011–present: Post-Jobs era Cook's leadership

This section is in list format but may read better as prose. You can help by
converting this section if appropriate. Editing help is available. (January 2023)
On October 5 2011 Steve Jobs died marking the end of an era for Apple. The
first major product announcement by Apple following Jobs's passing occurred
on January 19 2012 when Apple's Phil Schiller introduced iBook's Textbooks
for iOS and iBook Author for Mac OS X in New York City. Jobs stated in the
biography "Steve Jobs" that he wanted to reinvent the textbook industry and
education.

From 2011 to 2012 Apple released the iPhone 4S and iPhone 5 which featured
improved cameras an intelligent software assistant named Siri and cloud-synced

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data with iCloud; the third- and fourth-generation iPads which featured Retina
displays; and the iPad Mini which featured a 7.9-inch screen in contrast to the
iPad's 9.7-inch screen. These launches were successful with the iPhone 5
(released September 21 2012) becoming Apple's biggest iPhone launch with
over two million pre-orders and sales of three million iPads in three days
following the launch of the iPad Mini and fourth-generation iPad (released
November 3 2012). Apple also released a third-generation 13-inch MacBook
Pro with a Retina display and new iMac and Mac Mini computers.

On August 20 2012 Apple's rising stock price increased the company's market
capitalization to a then-record $624 billion. This beat the non-inflation-adjusted
record for market capitalization previously set by Microsoft in 1999. On August
24 2012 a US jury ruled that Samsung should pay Apple $1.05 billion (£665m)
in damages in an intellectual property lawsuit. Samsung appealed the damages
award which was reduced by $450 million and further granted Samsung's
request for a new trial. On November 10 2012 Apple confirmed a global
settlement that dismissed all existing lawsuits between Apple and HTC up to
that date in favor of a ten-year license agreement for current and future patents
between the two companies. It is predicted that Apple will make $280 million a
year from this deal with HTC.

In May 2014 the company confirmed its intent to acquire Dr. Dre and Jimmy
Iovine's audio company Beats Electronics—producer of the "Beats by Dr. Dre"
line of headphones and speaker products and operator of the music streaming
service Beats Music—for $3 billion and to sell their products through Apple's
retail outlets and resellers. Iovine believed that Beats had always "belonged"
with Apple as the company modeled itself after Apple's "unmatched ability to
marry culture and technology." The acquisition was the largest purchase in
Apple's history.

During a press event on September 9 2014 Apple introduced a smartwatch the

Apple Watch. Initially Apple marketed the device as a fashion accessory and a
complement to the iPhone that would allow people to look at their smartphones
less. Over time the company has focused on developing health and fitness-
oriented features on the watch in an effort to compete with dedicated activity
trackers.

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In January 2016 it was announced that one billion Apple devices were in active
use worldwide.

On June 6 2016 Fortune released Fortune 500 their list of companies ranked on
revenue generation. In the trailing fiscal year (2015) Apple appeared on the list
as the top tech company. It ranked third overall with $233 billion in revenue.
This represents a movement upward of two spots from the previous year's list.

In June 2017 Apple announced the HomePod its smart speaker aimed to
compete against Sonos Google Home and Amazon Echo. Towards the end of
the year TechCrunch reported that Apple was acquiring Shazam a company that
introduced its products at WWDC and specializing in music TV film and
advertising recognition. The acquisition was confirmed a few days later
reportedly costing Apple $400 million with media reports noting that the
purchase looked like a move to acquire data and tools bolstering the Apple
Music streaming service. The purchase was approved by the European Union in
September 2018.

Also in June 2017 Apple appointed Jamie Erlicht and Zack Van Amburg to
head the newly formed worldwide video unit. In November 2017 Apple
announced it was branching out into original scripted programming: a drama
series starring Jennifer Aniston and Reese Witherspoon and a reboot of the
anthology series Amazing Stories with Steven Spielberg. In June 2018 Apple
signed the Writers Guild of America's minimum basic agreement and Oprah
Winfrey to a multi-year content partnership. Additional partnerships for original
series include Sesame Workshop and DHX Media and its subsidiary Peanuts
Worldwide as well as a partnership with A24 to create original films.

During the Apple Special Event in September 2017 the AirPower wireless
charger was announced alongside the iPhone X 8 and Watch Series 3. The
AirPower was intended to wirelessly charge multiple devices simultaneously.
Though initially set to release in early 2018 the AirPower would be canceled in
March 2019 marking the first cancellation of a device under Cook's leadership.

On August 19 2020 Apple's share price briefly topped $467.77 making Apple
the first US company with a market capitalization of $2 trillion.

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During its annual WWDC keynote speech on June 22 2020 Apple announced it
would move away from Intel processors and the Mac would transition to
processors developed in-house. The announcement was expected by industry
analysts and it has been noted that Macs featuring Apple's processors would
allow for big increases in performance over current Intel-based models. On
November 10 2020 the MacBook Air MacBook Pro and the Mac Mini became
the first Mac devices powered by an Apple-designed processor the Apple M1.

In April 2022 it was reported that Samsung Electro-Mechanics would be

collaborating with Apple on its M2 chip instead of LG Innotek. Developer logs
showed that at least nine Mac models with four different M2 chips were being
tested.

The Wall Street Journal reported that an effort to develop its own chips left
Apple better prepared to deal with the semiconductor shortage that emerged
during the pandemic era and led to increased profitability with sales of Mac
computers that included M1 chips rising sharply in 2020 and 2021. It also
inspired other companies like Tesla Amazon and Meta Platforms to pursue a
similar path.

In April 2022 Apple opened an online store that allowed anyone in the US to
view repair manuals and order replacement parts for specific recent iPhones
although the difference in cost between this method and official repair is
anticipated to be minimal.

In May 2022 a trademark was filed for RealityOS an operating system

reportedly intended for virtual and augmented reality headsets first mentioned in
2017. According to Bloomberg the headset may come out in 2023. Further
insider reports state that the device uses iris scanning for payment confirmation
and signing into accounts.

On June 18 2022 the Apple Store in Towson Maryland became the first to
unionize in the U.S. with the employees voting to join the International
Association of Machinists and Aerospace Workers.

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On July 7 2022 Apple added Lockdown Mode to macOS 13 and iOS 16 as a
response to the earlier Pegasus revelations; the mode increases security
protections for high-risk users against targeted zero-day malware.

Apple launched a buy now pay later service called 'Apple Pay Later' for its
Apple Wallet users in March 2023. The program allows its users to apply for
loans between $50 and $1000 to make online or in-app purchases and then
repaying them through four installments spread over six weeks without any
interest or fees.

Marketing

Branding

The first official logo of Apple Inc. (1977–1998)

According to Steve Jobs the company's name was inspired by his visit to an
apple farm while he was on a fruitarian diet. Jobs thought the name "Apple" was
"fun spirited and not intimidating." Steve Jobs and Steve Wozniak were fans of
the Beatles but Apple Inc. had name and logo trademark issues with Apple
Corps Ltd. a multimedia company started by the Beatles in 1968. This resulted
in a series of lawsuits and tension between the two companies. These issues
ended with the settling of their lawsuit in 2007.

Apple's first logo designed by Ron Wayne depicts Sir Isaac Newton sitting
under an apple tree. It was almost immediately replaced by Rob Janoff's
"rainbow Apple" the now-familiar rainbow-colored silhouette of an apple with a
bite taken out of it. On August 27 1999 Apple officially dropped the rainbow
scheme and began to use monochromatic logos nearly identical in shape to the
previous rainbow incarnation.

Apple evangelists were actively engaged by the company at one time but this
was after the phenomenon had already been firmly established. Apple
evangelist Guy Kawasaki has called the brand fanaticism "something that was
stumbled upon" while Ive claimed in 2014 that "people have an incredibly
personal relationship" with Apple's products.

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Fortune magazine named Apple the most admired company in the United States
in 2008 and in the world from 2008 to 2012. On September 30 2013 Apple
surpassed Coca-Cola to become the world's most valuable brand in the
Omnicom Group's "Best Global Brands" report. Boston Consulting Group has
ranked Apple as the world's most innovative brand every year as of 2005.

As of January 2021 there were 1.65 billion Apple products in active use. In
February 2023 that number exceeded 2 billion devices.

Advertising

Apple's first slogan "Byte into an Apple" was coined in the late 1970s. From
1997 to 2002 the slogan "Think different" was used in advertising campaigns
and is still closely associated with Apple. Apple also has slogans for specific
product lines—for example "iThink therefore iMac" was used in 1998 to
promote the iMac and "Say hello to iPhone" has been used in iPhone
advertisements. "Hello" was also used to introduce the original Macintosh
Newton iMac ("hello (again)") and iPod.

From the introduction of the Macintosh in 1984 with the 1984 Super Bowl
advertisement to the more modern Get a Mac adverts Apple has been
recognized for its efforts towards effective advertising and marketing for its
products. However claims made by later campaigns were criticized particularly
the 2005 Power Mac ads. Apple's product advertisements gained significant
attention as a result of their eye-popping graphics and catchy tunes. Musicians
who benefited from an improved profile as a result of their songs being included
on Apple advertisements include Canadian singer Feist with the song "1234"
and Yael Naïm with the song "New Soul".

Stores

Apple Fifth Avenue the flagship store in New York City

The Genius Bar at Apple's Regent Street store in London

The first Apple Stores were originally opened as two locations in May 2001 by
then-CEO Steve Jobs after years of attempting but failing store-within-a-store
concepts. Seeing a need for improved retail presentation of the company's
products he began an effort in 1997 to revamp the retail program to get an

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improved relationship to consumers and hired Ron Johnson in 2000. Jobs
relaunched Apple's online store in 1997 and opened the first two physical stores
in 2001. The media initially speculated that Apple would fail but its stores were
highly successful bypassing the sales numbers of competing nearby stores and
within three years reached US$1 billion in annual sales becoming the fastest
retailer in history to do so.

Over the years Apple has expanded the number of retail locations and its
geographical coverage with 499 stores across 22 countries worldwide as of
December 2017. Strong product sales have placed Apple among the top-tier
retail stores with sales over $16 billion globally in 2011. Apple Stores
underwent a period of significant redesign beginning in May 2016. This
redesign included physical changes to the Apple Stores such as open spaces and
re-branded rooms as well as changes in function to facilitate interaction between
consumers and professionals.

Many Apple Stores are located inside shopping malls but Apple has built
several stand-alone "flagship" stores in high-profile locations. It has been
granted design patents and received architectural awards for its stores' designs
and construction specifically for its use of glass staircases and cubes. The
success of Apple Stores have had significant influence over other consumer
electronics retailers who have lost traffic control and profits due to a perceived
higher quality of service and products at Apple Stores. Due to the popularity of
the brand Apple receives a large number of job applications many of which
come from young workers. Although Apple Store employees receive above-
average pay are offered money toward education and health care and receive
product discounts there are limited or no paths of career advancement.

Market power
On March 16 2020 France fined Apple €1.1 billion for colluding with two
wholesalers to stifle competition and keep prices high by handicapping
independent resellers. The arrangement created aligned prices for Apple
products such as iPads and personal computers for about half the French retail
market. According to the French regulators the abuses occurred between 2005
and 2017 but were first discovered after a complaint by an independent reseller
eBizcuss in 2012.

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On August 13 2020 Epic Games the maker of the popular game Fortnite sued
Apple and Google after its hugely popular video game was removed from Apple
and Google's App Store. The suits come after both Apple and Google blocked
the game after it introduced a direct payment system effectively shutting out the
tech titans from collecting fees. In September 2020 Epic Games founded the
Coalition for App Fairness together with other thirteen companies which aims
for better conditions for the inclusion of apps in the app stores. Later in
December 2020 Facebook agreed to assist Epic in their legal game against
Apple planning to support the company by providing materials and documents
to Epic. Facebook had however stated that the company will not participate
directly with the lawsuit although did commit to helping with the discovery of
evidence relating to the trial of 2021. In the months prior to their agreement
Facebook had been dealing with feuds against Apple relating to the prices of
paid apps as well as privacy rule changes. Head of ad products for Facebook
Dan Levy commented saying that "this is not really about privacy for them this
is about an attack on personalized ads and the consequences it's going to have
on small-business owners" commenting on the full-page ads placed by
Facebook in various newspapers in December 2020.

Customer privacy

PRISM: a clandestine surveillance program under which the NSA collects user
data from companies like Facebook and Apple
Apple has a notable pro-privacy stance actively making privacy-conscious
features and settings part of its conferences promotional campaigns and public
image. With its iOS 8 mobile operating system in 2014 the company started
encrypting all contents of iOS devices through users' passcodes making it
impossible at the time for the company to provide customer data to law
enforcement requests seeking such information. With the popularity rise of
cloud storage solutions Apple began a technique in 2016 to do deep learning
scans for facial data in photos on the user's local device and encrypting the
content before uploading it to Apple's iCloud storage system. It also introduced
"differential privacy" a way to collect crowdsourced data from many users
while keeping individual users anonymous in a system that Wired described as
"trying to learn as much as possible about a group while learning as little as
possible about any individual in it". Users are explicitly asked if they want to
participate and can actively opt-in or opt-out.

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With Apple's release of an update to iOS 14 Apple required all developers of
iPhone iPad and iPod Touch applications to directly ask iPhone users
permission to track them. The feature titled "App Tracking Transparency"
received heavy criticism from Facebook whose primary business model
revolves around the tracking of users' data and sharing such data with
advertisers so users can see more relevant ads a technique commonly known as
targeted advertising. Despite Facebook's measures including purchasing full-
page newspaper advertisements protesting App Tracking Transparency Apple
released the update in mid-spring 2021. A study by Verizon subsidiary Flurry
Analytics reported only 4% of iOS users in the United States and 12%
worldwide have opted into tracking.

However Apple aids law enforcement in criminal investigations by providing

iCloud backups of users' devices and the company's commitment to privacy has
been questioned by its efforts to promote biometric authentication technology in
its newer iPhone models which do not have the same level of constitutional
privacy as a passcode in the United States.

Prior to the release of iOS 15 Apple announced new efforts at combating child
sexual abuse material on iOS and Mac platforms. Parents of minor iMessage
users can now be alerted if their child sends or receives nude photographs.
Additionally on-device hashing would take place on media destined for upload
to iCloud and hashes would be compared to a list of known abusive images
provided by law enforcement; if enough matches were found Apple would be
alerted and authorities informed. The new features received praise from law
enforcement and victims rights advocates however privacy advocates including
the Electronic Frontier Foundation condemned the new features as invasive and
highly prone to abuse by authoritarian governments.

Ireland's Data Protection Commission launched a privacy investigation to

examine whether Apple complied with the EU's GDPR law following an
investigation into how the company processes personal data with targeted ads
on its platform.

In December 2019 a report found that the iPhone 11 Pro continues tracking
location and collecting user data even after users have disabled location

76
services. In response an Apple engineer said the Location Services icon
"appears for system services that do not have a switch in settings."

According to published reports by Bloomberg News on March 30 2022 Apple

turned over data such as phone numbers physical addresses and IP addresses to
hackers posing as law enforcement officials using forged documents. The law
enforcement requests sometimes included forged signatures of real or fictional
officials. When asked about the allegations an Apple representative referred the
reporter to a section of the company policy for law enforcement guidelines
which stated "We review every data request for legal sufficiency and use
advanced systems and processes to validate law enforcement requests and detect
abuse."

II .NESTLE INC :

Type Public
Trade name AAPL
Traded as Nasdaq :NESN
ISIN CH00388863350
Industry Food Processing
Founded 1866
Founders Henri Nestle
Headquarters Vevey Nestle ,switzerland
Key People Arthur D. Levinson
Luca Maestri

77
Type Public
Tim Cook
Products ● Baby Food
● Coffee
● Dairy products
● Ice cream
● Pet foods

Revenue US$94,424 billion (2023)

Operating income US$13.44 billion (2023)
Net income US$9.590 billion (2023)
Total assets US$135.176 billion (2023)
Total equity US$40.775 billion (2023)
Area Served Worldwide
Number Of employees 3275000 (june 2023)
Rating S&P BBB-/ A-3/
Website www.nestle.com
FDI Initiatives:

Nestlé S.A. has actively pursued foreign direct investment (FDI) initiatives as a
core component of its global expansion strategy. With a strong focus on
emerging markets, the company has established manufacturing facilities,
distribution networks, and subsidiaries in key countries such as China, India,
and Brazil. Nestlé's approach to FDI extends beyond organic growth, as the
company has also engaged in acquisitions and joint ventures to broaden its
global footprint. Additionally, Nestlé places a significant emphasis on
sustainability in its FDI activities, with investments in responsible sourcing of
raw materials like cocoa, coffee, and palm oil. These FDI initiatives underscore
Nestlé's commitment to meeting the rising demand for its products while
aligning with global trends in responsible business practices and environmental
conservation.

1. Emerging Markets Focus: Nestlé has been particularly active in investing in

emerging markets. These markets often present significant growth opportunities
due to increasing middle-class populations and changing consumer preferences.
By investing in production facilities and distribution networks in countries like
China, India, and Brazil, Nestlé has positioned itself to cater to the rising
demand for its products.

78
2. Acquisitions and Joint Ventures: In addition to building its own
infrastructure, Nestlé has also engaged in acquisitions and joint ventures to
expand its global reach. For example, the acquisition of Atrium Innovations, a
leader in nutritional supplements, demonstrates Nestlé's commitment to the
health and wellness segment.

3. Sustainability and Responsible Sourcing: Nestlé places a strong emphasis on

sustainability in its FDI activities. The company has made investments in
sustainable sourcing of raw materials like cocoa, coffee, and palm oil. Such
investments align with global trends that emphasize responsible business
practices and environmental conservation.

Global Presence

Nestlé's global presence extends across more than 180 countries, making it one
of the most far-reaching food and beverage companies in the world. With a
strong foothold in both developed and emerging markets, Nestlé has
strategically positioned itself to cater to diverse consumer preferences and tap
into the vast potential of different regions. This extensive international network
allows Nestlé to adapt its product offerings and marketing strategies to local
tastes while benefiting from the economies of scale achieved through its global
production and distribution networks. This broad global presence is a testament
to Nestlé's commitment to serving consumers on a worldwide scale and its
active engagement in foreign direct investment activities.

History

1866–1900: Founding and early years

Henri Nestlé (1814–1890) a German-born Swiss confectioner was the founder

of Nestlé and one of the main creators of condensed milk.
Nestlé's origin dates back to the 1860s when two separate Swiss enterprises
were founded that would later form Nestlé. In the following decades the two
competing enterprises expanded their businesses throughout Europe and the
United States.

Timeline

79
1866: Charles Page (US consul to Switzerland) and George Page brothers from
Lee County Illinois established the Anglo-Swiss Condensed Milk Company in
Cham Switzerland. The company's first British operation was opened at
Chippenham Wiltshire in 1873.
1867: In Vevey Switzerland Henri Nestlé developed milk-based baby food and
soon began marketing it. The following year Daniel Peter began seven years of
work perfecting the milk chocolate manufacturing process. Nestlé had the
solution Peter needed to fix his problem of removing all the water from the milk
added to his chocolate thus preventing the product from developing mildew.
1875: Henri Nestlé retired; the company under new ownership retained his
name as Société Farine Lactée Henri Nestlé.
1877: Anglo-Swiss added milk-based baby foods to its products; in the
following year the Nestlé Company added condensed milk to its portfolio which
made the firms direct rivals.
In the late 19th and early 20th century Henri Nestlé and his successors
participated in the development of the chocolate industry in Switzerland
together with the Peter Kohler and Cailler families. In 1904 Daniel Peter and
Charles-Amédée Kohler (son of Charles-Amédée Kohler who founded a
chocolate factory in 1830) became partners and founded the Société générale
suisse des chocolats Peter et Kohler réunis. in 1911 the company created by
Peter and Kohler merged with Cailler. Alexandre Cailler (grandson of François-
Louis Cailler) had founded a chocolate factory in Broc in 1898 still used by
Nestlé today; which enabled the production of milk chocolate on a large scale.
In 1929 Peter Cailler Kohler Chocolats Suisses finally merged with the Nestlé
group. An earlier alliance in 1904 between Peter and Nestlé also allowed the
production of milk chocolate in the United States at the Fulton plant.

In 1905 Nestlé and Anglo-Swiss merged to become the Nestlé and Anglo-Swiss
Condensed Milk Company retaining that name until 1947 when the name
'Nestlé Alimentana SA' was taken as a result of the acquisition of Fabrique de
Produits Maggi SA (founded 1884) and its holding company Alimentana SA of
Kempttal Switzerland. The company's current name was adopted in 1977. By
the early 1900s the company was operating factories in the United States the
United Kingdom Germany and Spain. The First World War created a demand
for dairy products in the form of government contracts and by the end of the
war Nestlé's production had more than doubled.

80
A 1915 advertisement for "Nestlés Food" an early infant formula

Certificate for 100 shares of the Nestlé and Anglo-Swiss Condensed Milk Co.
issued 1. November 1918
In January 1919 Nestlé bought two condensed milk plants in Oregon from the
company Geibisch and Joplin for $250000. One was in Bandon while the other
was in Milwaukie. They expanded them considerably processing 250000
pounds of condensed milk daily in the Bandon plant.

Aleppo Nestlé building Tilal street 1920s

After the World War I government contracts dried up and consumers switched
back to fresh milk. However Nestlé's management responded quickly
streamlining operations and reducing debt. The 1920s saw Nestlé's first
expansion into new products with chocolate-manufacture becoming the
company's second most important activity; white chocolate was created in the
following decade. Louis Dapples was CEO till 1937 when succeeded by
Édouard Muller till his death in 1948.

Nestlé felt the effects of the Second World War immediately. Profits dropped
from US$20 million in 1938 to US$6 million in 1939. Factories were
established in developing countries particularly in South America. Ironically the
war helped with the introduction of the company's newest product Nescafé
("Nestlé's Coffee") which became a staple drink of the US military. Despite that
Nestlé actually supplied both sides in the war: the company had a contract to
feed the German army. Nestlé's production and sales rose in the wartime
economy.

The logo that Nestlé used from 1938 to 1966

The end of World War II was the beginning of a dynamic phase for Nestlé.
Growth accelerated and numerous companies were acquired. In 1947 Nestlé
merged with Maggi a manufacturer of seasonings and soups. Crosse &
Blackwell followed in 1950 as did Findus (1963) Libby's (1971) and Stouffer's
(1973). Diversification came under chairman & CEO Pierre Liotard-Vogt with a
shareholding in L'Oreal in 1974 and the acquisition of Alcon Laboratories Inc.
in 1977 for $280 million.

81
In the 1980s Nestlé's improved bottom line allowed the company to launch
further acquisitions. Carnation was acquired for US$3 billion in 1984 and
brought the evaporated milk brand as well as Coffee-Mate and Friskies to
Nestlé. In 1986 the company founded Nestlé Nespresso S.A. The British
confectionery company Rowntree Mackintosh was acquired in 1988 for $4.5
billion which brought brands such as Kit Kat Rolo Smarties and Aero.

1990–2011: Growth internationally

The first half of the 1990s proved to be favourable for Nestlé. Trade barriers
crumbled and world markets developed into more or less integrated trading
areas. Since 1996 there have been various acquisitions including San Pellegrino
(1997) D'Onofrio (1997) Spillers Petfoods (1998) and Ralston Purina (2002).
There were two major acquisitions in North America both in 2002 – in June
Nestlé merged its US ice cream business into Dreyer's and in August a US$2.6
billion acquisition was announced of Chef America the creator of Hot Pockets.
In the same time-frame Nestlé entered in a joint bid with Cadbury and came
close to purchasing the American company Hershey's one of its fiercest
confectionery competitors but the deal eventually fell through.

In December 2005 Nestlé bought the Greek company Delta Ice Cream for €240
million. In January 2006 it took full ownership of Dreyer's thus becoming the
world's largest ice cream maker with a 17.5% market share. In June 2006 Nestlé
purchased weight-loss company Jenny Craig for US$600 million. In July 2007
completing a deal announced the year before Nestlé acquired the Medical
Nutrition division of Novartis Pharmaceutical for US$2.5 billionand also
acquiring the milk-flavoring product known as Ovaltine the "Boost" and
"Resource" lines of nutritional supplements and Optifast dieting products.

The Brazilian president Lula da Silva inaugurates a factory in Feira de Santana

(Bahia) in February 2007.
In April 2007 returning to its roots Nestlé bought US baby-food manufacturer
Gerber for US$5.5 billion. In December 2007 Nestlé entered into a strategic
partnership with a Belgian chocolate maker Pierre Marcolini.

82
Nestlé agreed to sell its controlling stake in Alcon to Novartis on 4 January
2010. The sale was to form part of a broader US$39.3 billion offer by Novartis
for full acquisition of the world's largest eye-care company. On 1 March 2010
Nestlé concluded the purchase of Kraft Foods's North American frozen pizza
business for US$3.7 billion.

Since 2010 Nestlé has been working to transform itself into a nutrition health
and wellness company in an effort to combat declining confectionery sales and
the threat of expanding government regulation of such foods. This effort is
being led through the Nestlé Institute of Health Sciences under the direction of
Ed Baetge. The institute aims to develop "a new industry between food and
pharmaceuticals" by creating foodstuffs with preventive and corrective health
properties that would replace pharmaceutical drugs from pill bottles. The Health
Science branch has already produced several products such as drinks and
protein shakes meant to combat malnutrition diabetes digestive health obesity
and other diseases.

In July 2011 Nestlé SA agreed to buy 60 percent of Hsu Fu Chi International

Ltd. for about US$1.7 billion. On 23 April 2012 Nestlé agreed to acquire Pfizer
Inc.'s infant-nutrition formerly Wyeth Nutrition unit for US$11.9 billion topping
a joint bid from Danone and Mead Johnson.

2012–present
In recent years Nestlé Health Science has made several acquisitions. It acquired
Vitaflo which makes clinical nutritional products for people with genetic
disorders; CM&D Pharma Ltd. a company that specialises in the development
of products for patients with chronic conditions like kidney disease; and
Prometheus Laboratories a firm specialising in treatments for gastrointestinal
diseases and cancer. It also holds a minority stake in Vital Foods a New
Zealand-based company that develops kiwifruit-based food products as of 2012.

Nestlé sold its Jenny Craig business unit to North Castle Partners in 2013. In
February 2013 Nestlé Health Science bought Pamlab which makes medical
foods based on L-methylfolate targeting depression diabetes and memory loss.
In February 2014 Nestlé sold its PowerBar sports nutrition business to Post
Holdings Inc. Later in November 2014 Nestlé announced that it was exploring
strategic options for its frozen food subsidiary Davigel.

83
In December 2014 Nestlé announced that it was opening 10 skin care research
centres worldwide deepening its investment in a faster-growing market for
healthcare products. That year Nestlé spent about $350 million on dermatology
research and development. The first of the research hubs Nestlé Skin Health
Investigation Education and Longevity Development (SHIELD) centres will
open mid 2015 in New York followed by Hong Kong and São Paulo and later
others in North America Asia and Europe. The initiative is being launched in
partnership with the Global Coalition on Aging (GCOA) a consortium that
includes companies such as Intel and Bank of America.

In January 2017 Nestlé announced that it was relocating its US headquarters

from Glendale California to Rosslyn Virginia outside of Washington DC.

In March 2017 Nestlé announced that they will lower the sugar content in Kit
Kat Yorkie and Aero chocolate bars by 10% by 2018. In July a similar
announcement followed concerning the reduction of sugar content in its
breakfast cereals in the UK.

The company announced a $20.8 billion share buyback in June 2017 following
the publication of a letter written by Third Point Management founder Daniel S.
Loeb Nestlé's fourth-largest stakeholder with a $3.5 billion stake explaining
how the firm should change its business structure. Consequently the firm will
reportedly focus investment on sectors such as coffee and pet care and will seek
acquisitions in the consumer health-care industry.

In 2016 Nestlé and PAI Partners establish a joint venture Froneri to combine the
two companies' ice cream activities throughout Europe and other international
countries.

In July 2017 Nestlé introduced a new type of infant formula in Spain containing
two human milk oligosaccharides. Oligosaccharides are the third most abundant
components of breast milk with various health benefits but previously were not
part of infant formula.

In September 2017 Nestlé S.A. acquired a majority stake of Blue Bottle Coffee.
While the deal's financial details were not disclosed the Financial Times

84
reported "Nestlé is understood to be paying up to $500m for the 68 per cent
stake in Blue Bottle".

In September 2017 Nestlé USA agreed to acquire Sweet Earth a California-

based producer of plant-based foods for an undisclosed sum.

In January 2018 Nestlé USA announced it was selling its US confectionary

business to Ferrara Candy Company an Italian chocolate and candy maker. The
company was sold for a total of an estimated $2.8 billion.

In May 2018 it was announced that Nestlé and Starbucks struck a $7.15 billion
distribution deal which allows Nestlé to market sell and distribute Starbucks
coffee globally and to incorporate the brand's coffee varieties into Nestlé's
proprietary single-serve system expanding the overseas markets for both
companies.

Nestlé set a new profit target in September 2017 and agreed to offload over 20
of its US candy brands in January 2018. However sales grew only 2.4% in 2017
and as of July 2018 the share price declined more than 8%. While some
suggestions were adopted Loeb said in a July 2018 letter that the shifts are too
small and too slow. In a statement Nestlé wrote that it was "delivering results"
and listed actions it had taken including investing in key brands and its global
coffee partnership with Starbucks. However activist investors disagreed leading
Third Point Management to launch NestleNOW a website to push its case with
recommendations calling for change accusing Nestlé of not being as fast
aggressive or strategic as it needs to be. Activist investors called for Nestlé to
divide into three units with distinct CEOs regional structures and marketing
heads - beverage nutrition and grocery; spin off more businesses that do not fit
its model such as ice cream frozen foods and confectionery; and add an outsider
with expertise in the food and beverage industry to the board.
In September 2018 Nestlé announced that it would sell Gerber Life Insurance
for $1.55 billion.
In October 2018 Nestlé announced the launch of the Nestlé Alumni Network
through a strategic partnership with SAP & EnterpriseAlumni to engage with
their over 1 million alumni globally.

85
In 2019 the company announced that it would publish Nutri-Score on all of its
products sold in the European countries that supported the nutritional label.
In 2020 Nestlé USA's and Nestlé Canada's ice cream divisions were acquired by
Froneri. Also during that year Nestlé announced that the company wants to
invest in plant-based food starting with a "tuna salad" and meat-free products to
engage and reach younger and vegan consumers.
On 16 February 2021 Nestlé announced that it had agreed to sell its water
brands in the US and Canada to One Rock Capital Partners and Metropoulos &
Co. The sale would include the spring water and mountain brands the purified
water brand and the delivery service. The plan did not include the Perrier
S.Pellegrino and Acqua Panna brands. In early April 2021 the sale was
concluded.
The COVID-19 pandemic did not affect Nestlé negatively. Due to lockdowns
people bought more packaged foods not only coffee and dairy products but also
pet products which increased the company's sales. Nestlé is recording its
strongest quarterly sales growth in 10 years.
In April 2021 Nestlé agreed to purchase the vitamin manufacturing Bountiful
Company formerly known as The Nature's Bounty Co. for $5.75 billion noting
as well that much of the company's growth that quarter came from "vitamins
minerals and supplements that support health and the immune system". The deal
acquires various assets from Bountiful including Nature's Bounty Solgar Osteo
Bi-Flex and Puritan's Pride.
In January 2022 Nestlé will pay cocoa farmers cash if they send their children to
school.
In May 2022 it was announced Nestlé's Health Science unit had acquired the
Brazilian organic natural plant-based food maker Puravida.
In May 2022 Nestlé was sending baby formula supplies to the U.S. from
European air bases to ease the 2022 United States infant formula shortage.
These relief shipments included products from the Gerber baby food formula
brand from the Netherlands and Alfamino baby formula from Switzerland.

In September 2023 it was announced Nestlé had acquired a majority stake in the
Extrema Minas Gerais-headquartered premium chocolate manufacturer Grupo
CRM for an undisclosed amount.

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Capital ownership of Nestlé by country of origin as of 2014
Switzerland (35.28%)
United States (28.53%)
All others (36.19%)

CHAPTER IV
87
88
4.ANALYSIS & INTERPRETATION

In the analysis and interpretation section of the report titled "Foreign Direct
Investment (FDI) Trends," we delve into the intricate landscape of FDI trends
across different industries and regions. This critical examination is a pivotal
aspect of understanding the dynamics of international business.investigation
reveals compelling patterns in FDI inflows and outflows over recent years. One
noteworthy observation is the pronounced shift in FDI preferences towards
emerging markets. Developing nations have increasingly become attractive
investment destinations, characterized by robust economic growth, expanding
consumer markets, and competitive advantages. Industries such as technology,
renewable energy, and manufacturing have witnessed a surge in FDI, often
driven by multinational corporations seeking to tap into these burgeoning
markets.regional analysis uncovers distinct trends. While traditionally
prominent FDI destinations like North America and Western Europe continue to
draw substantial investments, we see the rise of Asian and African regions as
hotspots for FDI. Asia, in particular, with its rapidly growing economies and
policy reforms to facilitate foreign investments, has emerged as a pivotal player
in the global FDI landscape. interpretation of these trends suggests that
businesses are strategically diversifying their FDI portfolios, seeking both
established and emerging markets to mitigate risks and leverage growth
opportunities. Additionally, the role of government policies, trade agreements,
and geopolitical factors cannot be underestimated in shaping FDI trends.

APPLE INC.:

Apple Inc. has been a prominent player in the global FDI landscape. The
company's investments are characterized by their strategic nature, often aimed
at expanding its global supply chain and market presence. One notable trend in
Apple's FDI is its substantial investment in Asian countries, particularly in
China and Taiwan. This underscores Apple's reliance on these regions for
manufacturing and assembling its products, such as iPhones and iPads. These
FDI trends are indicative of the importance of Asia in Apple's global operations,
benefiting from skilled labor and cost-effective production. Apple's FDI reflects
its commitment to innovation and research. Investments in research and
development centers and acquisitions of technology companies across regions
signal Apple's pursuit of cutting-edge technology and intellectual property. This

89
trend aligns with Apple's strategy to maintain a competitive edge in the global
tech market.

Apple - 43 Year Stock Price History | AAPL

Historical daily share price chart and data for Apple since 1980 adjusted for splits and
dividends. The latest closing stock price for Apple as of September 25, 2023 is 176.08.
● The all-time high Apple stock closing price was 196.19 on July 31,
2023.
● The Apple 52-week high stock price is 198.23, which is 12.6%
above the current share price.
● The Apple 52-week low stock price is 124.17, which is 29.5%
below the current share price.
● The average Apple stock price for the last 52 weeks is 161.63.

90
Apple Revenue 2010-2023 | AAPL
Apple annual/quarterly revenue history and growth rate from 2010 to 2023.
Revenue can be defined as the amount of money a company receives from its
customers in exchange for the sales of goods or services. Revenue is the top line
item on an income statement from which all costs and expenses are subtracted
to arrive at net income.
● Apple revenue for the quarter ending June 30, 2023 was $81.797B, a
1.4% decline year-over-year.
● Apple revenue for the twelve months ending June 30, 2023 was
$383.933B, a 0.93% decline year-over-year.
● Apple annual revenue for 2022 was $394.328B, a 7.79% increase from
2021.
● Apple annual revenue for 2021 was $365.817B, a 33.26% increase from
2020.
● Apple annual revenue for 2020 was $274.515B, a 5.51% increase from
2019.

91
Apple PE Ratio 2010-2023 | AAPL

NESTLE:

Nestle, a multinational food and beverage conglomerate, has its unique FDI
trends within the context of the industry. Nestle's FDI patterns predominantly
reflect its strategy of entering and expanding in emerging markets. The
company often invests heavily in countries with a growing middle class and
increasing consumer demand for packaged and processed food products.

Nestle's FDI has been especially pronounced in regions like Asia, Latin
America, and Africa. This trend indicates the company's focus on tapping into
the potential of these regions, where it has set up production facilities and

92
distribution networks. Nestle's investments in these areas demonstrate its ability
to adapt to local preferences while maintaining global quality standards. Nestle's
FDI trends also encompass acquisitions of local food and beverage companies.
This approach allows Nestle to gain a strong foothold in new markets quickly.
Through these acquisitions, Nestle can leverage existing brand recognition and
customer loyalty to expand its market share and diversify its product portfolio.

NESTLE Income Statement Analysis

■ Operating income during the year rose 14.6% on a year-on-year
(YoY) basis.
■ The company's operating profit increased by 11.4% YoY during the
fiscal. Operating profit margins witnessed a fall and stood at 21.9%
in CY22 as against 22.6% in CY21.
■ Depreciation charges increased by 3.1% and finance costs
decreased by 23.4% YoY, respectively.
■ Other income declined by 13.6% YoY.
■ Net profit for the year grew by 12.8% YoY.
■ Net profit margins during the year declined from 14.4% in CY21 to
14.1% in CY22.

NESTLE Income Statement 2021-22

No. of Mths Year Ending 12 Dec-21 12 Dec-22 % Change

Net Sales Rs m 147,406 168,970 14.6%

Other income Rs m 1,241 1,073 -13.6%

Total Revenues Rs m 148,647 170,042 14.4%

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 Gross profit Rs m 33,259 37,063 11.4%

Depreciation Rs m 3,910 4,030 3.1%

Interest Rs m 2,017 1,546 -23.4%

Profit before tax Rs m 28,573 32,560 14.0%

Tax Rs m 7,389 8,655 17.1%

Profit after tax Rs m 21,184 23,905 12.8%

Gross profit margin % 22.6 21.9

Effective tax rate % 25.9 26.6

Net profit margin % 14.4 14.1

NESTLE Balance Sheet Analysis

■ The company's current liabilities during CY22 stood at Rs 31
billion as compared to Rs 28 billion in CY21, thereby witnessing an
increase of 11.4%.
■ Long-term debt down at Rs 267 million as compared to Rs 275
million during CY21, a fall of 2.9%.

94
 ■ Current assets rose 26% and stood at Rs 35 billion, while fixed
assets rose 0% and stood at Rs 55 billion in CY22.
■ Overall, the total assets and liabilities for CY22 stood at Rs 90
billion as against Rs 82 billion during CY21, thereby witnessing a
growth of 9%.

NESTLE Balance Sheet as on December 2022

No. of Mths Year Ending 12 Dec-21 12 Dec-22 % Change

Networth Rs m 19,464 24,592 26.3

Current Liabilities Rs m 27,647 30,798 11.4

Long-term Debt Rs m 275 267 -2.9

Total Liabilities Rs m 82,083 89,531 9.1

Current assets Rs m 27,622 34,902 26.4

Fixed Assets Rs m 54,461 54,630 0.3

Total Assets Rs m 82,083 89,531 9.1

NESTLE Cash Flow Statement Analysis

95
 ■ NESTLE's cash flow from operating activities (CFO) during CY22
stood at Rs 27 billion, an improvement of 22.4% on a YoY basis.
■ Cash flow from investing activities (CFI) during CY22 stood at Rs
-4 billion on a YoY basis.
■ Cash flow from financial activities (CFF) during CY22 stood at Rs
-21 billion on a YoY basis.
■ Overall, net cash flows for the company during CY22 stood at Rs 2
billion from the Rs -17 billion net cash flows seen during CY21.

NESTLE Cash Flow Statement 2021-22

No. of
12 12
months
%
Particulars
Change
Year Dec- Dec-
Ending 21 22

Cash Flow from Operating 22,36 27,37

Rs m 22.4%
Activities 0 4

-
Cash Flow from Investing
Rs m 19,20 -3,917 -
Activities
3

- -
Cash Flow from Financing
Rs m 20,20 21,22 -
Activities
0 7

Net Cash Flow Rs m - 2,230 -

17,04

96
 3

Current Valuations for NESTLE

■ The trailing twelve-month earnings per share (EPS) of the company
stands at Rs 247.9, an improvement from the EPS of Rs 219.7
recorded last year.
■ The price to earnings (P/E) ratio, at the current price of Rs
19,598.8, stands at 78.5 times its trailing twelve months earnings.
■ The price to book value (P/BV) ratio at current price levels stands
at 76.8 times, while the price to sales ratio stands at 11.2 times.
■ The company's price to cash flow (P/CF) ratio stood at 63.9 times
its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending 12 Dec-21 12 Dec-22

Sales per share (Unadj.) Rs 1,528.8 1,752.4

TTM Earnings per share Rs 219.7 247.9

Diluted earnings per share Rs 219.7 247.9

Price to Cash Flow x 75.7 63.9

TTM P/E ratio x 88.9 78.5

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 Price / Book Value ratio x 90.4 72.6

Market Cap Rs m 1,759,584 1,786,245

Dividends per share (Unadj.) Rs 200.0 220.0

Ratio Analysis for NESTLE

Solvency Ratios
Current Ratio: The company's current ratio improved and stood at 1.1x
during CY22, from 1.0x during CY21. The current ratio measures the
company's ability to pay short-term and long-term obligations.
Interest Coverage Ratio: The company's interest coverage ratio
improved and stood at 22.1x during CY22, from 15.2x during CY21.
The interest coverage ratio of a company states how easily a company
can pay its interest expense on outstanding debt. A higher ratio is
preferable.
Profitability Ratios

Return on Equity (ROE): The ROE for the company declined and down at
97.2% during CY22, from 108.8% during CY22. The ROE measures the ability
of a firm to generate profits from its shareholders capital in the company.
Return on Capital Employed (ROCE): The ROCE for the company declined
and down at 137.2% during CY22, from 155.0% during CY21. The ROCE
measures the ability of a firm to generate profits from its total capital
(shareholder capital plus debt capital) employed in the company.
Return on Assets (ROA): The ROA of the company improved and stood at
28.4% during CY22, from 28.3% during CY21. The ROA measures how
efficiently the company uses its assets to generate earnings.
Key Ratio Analysis

98
No. of Mths Year Ending 12 Dec-21 12 Dec-22

Current ratio x 1.0 1.1

Debtors’ Days Days 4 4

Interest coverage x 15.2 22.1

Debt to equity ratio x 0.0 0.0

Return on assets % 28.3 28.4

Return on equity % 108.8 97.2

Return on capital employed % 155.0 137.2

99
CHAPTER V

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SUMMARY OF FINDINGS

The study delved into the trends and patterns of Foreign Direct Investment
(FDI) across diverse industries and regions. Several key findings emerged from
the research. Firstly, it was observed that the technology and manufacturing
sectors attracted the highest FDI inflows, indicating a strong investor preference
for these industries. Additionally, the research highlighted a notable shift in FDI
towards emerging markets, with Asia-Pacific and Africa experiencing
significant growth. Furthermore, the analysis uncovered a positive correlation
between FDI and economic development, emphasizing the role of FDI in
fostering economic growth. Finally, the study identified government policies
and regulatory frameworks as critical factors influencing FDI trends,
underlining the importance of a conducive business environment for attracting
foreign investments. These findings collectively provide valuable insights into
the evolving landscape of FDI, offering actionable guidance for businesses and
policymakers.

1. Apple Inc.: Apple Inc., a multinational technology company, has consistently

attracted significant FDI due to its innovative product lineup and global reach.
The company's FDI trends reveal a strong preference for establishing
subsidiaries and production facilities in countries with advanced technological
infrastructure and a skilled workforce. Additionally, Apple's strategic
partnerships with suppliers and manufacturers in Asian countries, particularly in
China, have contributed to its substantial FDI inflows. Furthermore, Apple's
focus on intellectual property and design has led to increased FDI in research
and development centers worldwide.

2. Nestlé: Nestlé, a multinational food and beverage conglomerate, has

demonstrated a different FDI pattern compared to Apple. Nestlé's FDI is heavily
concentrated in the food and beverage sector, with acquisitions and joint
ventures being its primary strategies for expanding its global presence. The
company has strategically invested in emerging markets to tap into the growing
consumer demand for packaged and processed foods. Nestlé's FDI trends also
highlight its commitment to sustainability and responsible sourcing, with
investments in agricultural practices and supply chain improvements in various
regions.

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SUGGESTION

As we delve into the analysis of Foreign Direct Investment (FDI) trends across
industries and regions, it becomes evident that the global business landscape is
continually evolving. To capitalize on the opportunities presented by these
trends, businesses and governments alike must adopt proactive strategies. For
businesses, diversification across sectors and regions can mitigate risks
associated with changing FDI patterns. Additionally, fostering innovation,
enhancing productivity, and maintaining strong corporate governance are key to
attracting FDI in an increasingly competitive environment. On the other hand,
governments should focus on creating favorable investment climates through
regulatory reforms, infrastructure development, and transparent policies.
Furthermore, fostering international cooperation and trade agreements can
amplify the benefits of FDI for both host and source countries. Overall, adapting
to the dynamic nature of FDI trends is essential for sustainable economic
growth and prosperity.

In the context of Foreign Direct Investment (FDI) trends, Apple Inc. should
consider diversifying its FDI portfolio across emerging markets. While the
company has historically concentrated its FDI in established markets like the
United States and Europe, emerging economies, particularly in Asia and Latin
America, are becoming increasingly pivotal in the global technology industry.
Apple's investment in research and development centers, manufacturing
facilities, and retail stores in these regions would not only reduce risk associated
with overdependence on mature markets but also tap into the burgeoning
consumer base. Furthermore, forming strategic partnerships or joint ventures
with local technology firms could facilitate easier market entry and adaptation
to regional preferences.

Nestlé's FDI strategies have proven effective in expanding its global presence
and mitigating risks associated with market fluctuations. The company's
commitment to investing in R&D, local manufacturing, and distribution
networks in various regions has enabled it to adapt to local tastes and
preferences while maintaining a strong global brand. In the future, Nestlé
should continue to monitor FDI trends and adapt its strategies to capitalize on

102
emerging markets' growth potential, particularly in Asia and Africa. By
maintaining a balanced FDI portfolio and focusing on sustainable and
innovative products, Nestlé is well-positioned to thrive in the dynamic and
competitive global food and beverage industry.

Nestlé:
1. Diversify
2. Innovate
3. Localize
4. Expand
5. Sustainability
6. Acquisitions
7. Adapt
8. Collaborate
9. Emerging Markets
10. R&D

Apple:
1. Diversify
2. Emerging Markets
3. R&D
4. Manufacturing
5. Partnerships
6. Innovation
7. Retail
8. Adaptation
9. Localization
10. Market Trends

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CONCLUSION

The examination of Foreign Direct Investment (FDI) trends across various

industries and regions has revealed valuable insights into the dynamics of global
economic integration. The analysis showcased the increasing importance of FDI
as a driver of economic growth and development, with particular sectors and
regions experiencing varying degrees of attractiveness for foreign investors. It is
evident that FDI patterns are influenced by a myriad of factors, including
government policies, market conditions, technological advancements, and
geopolitical considerations. As we move forward, it becomes imperative for
policymakers, businesses, and stakeholders to remain vigilant and adaptive to
these ever-evolving FDI trends, as they hold the potential to shape the economic
landscape on a global scale. FDI will continue to play a pivotal role in fostering
cross-border collaborations, spurring innovation, and contributing to the
sustainable development of economies around the world.
In conclusion, both Apple Inc. and Nestlé S.A. stand as exemplary global giants
in their respective industries, demonstrating unique approaches to Foreign
Direct Investment (FDI) that reflect the nuances of the technology and food
sectors. Apple's strategic FDI initiatives have primarily revolved around
manufacturing and assembly in countries like China, allowing the company to
optimize production costs and access vast consumer markets. Their investments
reflect a dynamic response to changing consumer preferences and global supply
chain dynamics.

On the other hand, Nestlé's FDI strategies in the food and beverage industry
prioritize local responsiveness and adaptation to regional tastes. This includes
acquisitions of local brands and the establishment of a strong global presence
through diverse product offerings. Nestlé's FDI approach exemplifies a
commitment to understanding and catering to the unique preferences of
consumers in various regions while fostering economic growth and employment
in local markets. Both companies underscore the importance of leveraging FDI
to not only access new markets but also to strategically position themselves in
the global landscape. Their success stories reveal that while industry-specific
factors influence FDI decisions, the ability to adapt and innovate within a
constantly evolving global marketplace is the common thread that binds their
international investments.

104
BIBLIOGRAPHY

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Production and Exports. Journal of International Economics, 118, 155-173.

3. UNCTAD. (2020). World Investment Report 2020: International Production

Beyond the Pandemic. United Nations Conference on Trade and Development.

4. Caves, R. E. (2007). Multinational Enterprise and Economic Analysis.

Cambridge University Press.

5. Alfaro, L., Chanda, A., Kalemli-Ozcan, S., & Sayek, S. (2004). FDI and
Economic Growth: The Role of Local Financial Markets. Journal of
International Economics, 64(1), 89-112.

6. World Bank. (2020). Global Economic Prospects, June 2020. World Bank
Group.

7. Grosse, R., & Trevino, L. J. (1996). Foreign Direct Investment in the United
States: An Analysis by Country of Origin. Journal of International Business
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8. Brainard, S. L. (1997). An Empirical Assessment of the Proximity-

Concentration Trade-off Between Multinational Sales and Trade. American
Economic Review, 87(4), 520-544.

9. Cuervo-Cazurra, A., & Genc, M. (2008). Transforming Disadvantages into

Advantages: Developing-Country MNEs in the Least Developed Countries.
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10. Aliber, R. Z. (1970). A Theory of Foreign Direct Investment. In H. G.

Johnson & A. Smith (Eds.), Trade, Growth, and the Balance of Payments:
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Webliography:

1. UNCTAD - World Investment Report: https://unctad.org/wir

2. World Bank - FDI Data and Research:

https://www.worldbank.org/en/topic/foreign-direct-investment

3. OECD - FDI Statistics: https://stats.oecd.org/Index.aspx?

DataSetCode=FDI_FLOW_PARTNER

4. IMF - Foreign Direct Investment Trends: https://www.imf.org/en/Topics/imf-

and-global-economic-surveillance/external-sector-statistics-foreign-direct-
investment

5. The United Nations - FDI Trends and Policies:

https://www.un.org/development/desa/dpad/publication/foreign-direct-
investment-trends-and-policies/

6. Investopedia - Understanding Foreign Direct Investment:

https://www.investopedia.com/terms/f/fdi.asp

7. The World Trade Organization (WTO) - FDI and Trade:

https://www.wto.org/english/res_e/statis_e/fdi_e.htm

8. Brookings Institution - Research on FDI:

https://www.brookings.edu/research/foreign-direct-investment/

9. The Heritage Foundation - FDI Index: https://www.heritage.org/international-

economies/report/2020-index-economic-freedom-foreign-direct-investment

10. United Nations Economic Commission for Europe (UNECE) - FDI

Database: https://stats.unece.org/statdb/?queryid=152

QUESTIONNAIRE

106
NAME :

AGE :

Section 1: General FDI Trends

1. What is the primary purpose of FDI?

a) Exporting goods and services
b) Gaining access to foreign markets
c) Reducing production costs
d) Enhancing cultural exchange

2. Which of the following is NOT a typical form of FDI?

a) Greenfield investment
b) Joint venture
c) Portfolio investment
d) Merger and acquisition

3. What is the primary source of FDI data for your research?

a) Government reports
b) International organizations (e.g., UNCTAD)
c) Industry reports
d) Academic research

4. Which region attracts the highest FDI inflows globally in recent years?
a) North America
b) Europe
c) Asia
d) Africa

5. What is the role of government policies in attracting FDI?

a) No significant impact
b) Can deter or attract FDI
c) Only relevant for domestic investments
d) Encourages portfolio investment

107
Section 2: Industry-Specific Trends

6. In which industry has FDI shown the most significant growth in recent years?
a) Information technology (IT)
b) Agriculture
c) Healthcare
d) Automotive

7. Which factor is often crucial in determining FDI trends within the healthcare
industry?
a) Technological advancements
b) Government regulations
c) Consumer preferences
d) Currency exchange rates

8. FDI in the automotive industry is primarily driven by:

a) Access to skilled labor
b) Environmental regulations
c) Changes in consumer demand
d) Intellectual property rights

9. Which technology-related industry has witnessed a surge in FDI in the past

decade?
a) Renewable energy
b) Textiles
c) Mining
d) Food processing

10. What is the main factor influencing FDI trends in the renewable energy
sector?
a) Government incentives
b) Availability of natural resources
c) Competitive pricing
d) Consumer demand

Section 3: Regional FDI Trends

108
11. Which region is known for its high FDI inflow in the technology sector
(e.g., Silicon Valley)?
a) North America
b) Europe
c) Asia
d) South America

12. FDI in the oil and gas industry is prominently associated with which region?
a) Middle East
b) Africa
c) Southeast Asia
d) North America

13. What is a key driver of FDI in emerging markets such as Brazil, India, and
China?
a) Mature market saturation
b) Low labor costs
c) Political instability
d) High corporate taxes

14. Which region is often cited for its FDI-friendly policies and ease of doing
business?
a) Western Europe
b) Eastern Europe
c) Southeast Asia
d) Sub-Saharan Africa

15. In which region has FDI been most affected by trade tensions and
geopolitical factors in recent years?
a) North America
b) Europe
c) Asia
d) South America

109