At Shri Ram Murti Smarak International Business School, (SRMS IBS) Lucknow students stay aware of latest developments affecting the business world through seminars, guest lectures, and conferences. These events contribute to knowledge development and dissemination in students, thus enhancing everyone’s value.
On 24 March, the topic for discussion was Foreign Direct Investment (FDI), where students performed a role play and explained the effects of FDI in Indian market as well as on China and USA. It was shown that while theoretical models imply that FDI is beneficial for a country’s development—a belief widely shared among policymakers—the empirical evidence does not support this view. This role play bridged the gap between theoretical and empirical literature with a model and calibration exercises that examine the role of local financial markets.The whole focus was on how FDI in 2015, 2016 and 2017 affected Indian market in retail, banking, defense, and e-commerce, besides other sectors. The role play emphasized how local policies and institutions may actually limit the potential benefits that FDI could provide to a host country. Key concepts discussed were:
The informative session proved invaluable for students in understanding the nuances of FDI.