Author: Shivangi Vyas

The current trends of the foreign direct investment show a stark increase in the Asian developing countries. However the flow has been declining in other regions, especially in the developed economies. Inflow of foreign funds to India nearly doubled, reaching an estimated US$59 billion (Unctad 2015).

Perfect market is a hypothetical market characterised by large number of buyers and sellers in the presence of perfect knowledge. Similarly, perfect market assumes the presence of homogeneous product, total absence of government intervention and no transportation costs.