Introduction: The major impact of globalization on the economies
of countries has been the integration of world markets; it has enfurled new opportunities
of investments for the economies by blurring the thin line that demarcates foreign
and domestic investments. The allure of high return and diversification has led,
many a countries to cross the national boundaries and capture the world market.
One such way is by setting up projects abroad and catering to the market locally.
This may involve additional risks, thereby, making it imperative to carry out
feasibility study.
The difference however, lies in identifying and evaluating the additional elements,
which form part of foreign or cross border projects, which generally are:
- Single or multiple foreign currencies
- Multiple tax rates and tax systems
- Foreign political risk and legal system
- The economic variables of inflation, interest rates, exchange rate etc
Some of the special circumstances involved are:
- Capital flow restrictions that block funds in the host country
- Project specific subsidies provided by the host government
- Project specific penalties imposed by the host government
- Most important, exchange rate fluctuations it drives the valuation of the
project in local currency to be different from the foreign currency.
In spite of this, the number of foreign projects undertaken by countries has
been increasing, generally taking the form of foreign direct investment (FDI).
India itself has been encouraging such projects, for reasons like matching demand
and supply, technology transfer and new production methods etc.
Number of Pages of Project Report: 76
Package Includes: Project Report
Project Format: Document (.doc)
Table of Contents of Synopsis:
1. Introduction
2. Steps involved in Foreign Project Appraisal
3. Foreign Project Appraisal- Criteria
4. Foreign Project Appraisal- Problems
5. Points to be considered in Foreign Project Appraisal
6. Case Studies:
Case Study 1: BARKATH CHEMICAOS FOOD SDN BHD, MALAYSIA
Case Study 2: DELTA IN THE GREEK MARKET
Case Study 3: ONGC VIDESH LIMITED PROJECT IN VIETNAM
Case Study 4: AN INTEGRATED ANALYSIS OF POWER PURCHASE AGREEMENT
CASE STUDY 5: XYZ TOLL ROAD COMPANY LTD.
CASE STUDY 6: XYZ Power Company
7. APPENDIX