【Unlocking Word Meanings】
Read the following words/expressions found in today’s article.
1. augment /ɔgˈmɛnt/ (v.) – to raise or increase
Example: Partnerships with foreign companies can help augment sales.
2. frontrunner /frʌnt ˈrʌn ər / (n.) – one that is leading
Example: The company is the frontrunner in the banking industry.
3. impede /ɪmˈpid/ (v.) – to delay progress
Example: The country’s increasing unemployment rate impedes economic growth.
4. plight /plaɪt/ (n.) – struggle
Example: The banker’s daily plight includes dealing with difficult customers.
5. emerging /ɪˈmɜr dʒɪŋ / (adj.) – developing or rising
Example: International businesses usually prefer to enter emerging markets such as China and Brazil.
Read the text below.
The Indian government has loosened its policy on foreign direct investment.
Foreign direct investment (FDI), an investment done by a company into another country, is an important source of monetary means that can augment an economy. Moody’s Investors Service, a frontrunner in credit ratings and analysis, affirms that things are looking up for the Indian economy because adjustments in foreign investment will allow prominent brands to enter the Indian market.
The revised law covers sectors such as retail, defense, and civil aviation. Prime Minister Narendra Modi expressed in his Twitter account that this development could bring in more employment opportunities.
India has long appealed for FDI, but apart from demanding tax laws and conflicts with local counterparts of global businesses, cultural differences impeded the progress of the policy’s implementation. Stephen Manallack, author of Riding the Elephant - Doing Business in India, asserts that cultural misunderstandings could lead to failed partnerships with foreign investors.
Efforts to increase foreign capital could help improve India’s poor economic condition, which is closely related to its enduring plight with corruption.
As an emerging market, India is catching up to the top two economic giants–the United States and China. In 2015, India surpassed top Asian economy China after obtaining foreign investments amounting to $63 billion in the coal and power industries.
The entry of major smartphone brands like Apple in the Indian market could also start massive interest among its large population.
Enjoy a discussion with your tutor.
· Aside from attracting foreign investors, how else can countries strengthen business ties with other countries?
· What other factors do you think can hinder foreign companies from investing in another country?
· If you were to invest in another country, where would it be? Why?
· What kind of industry would you consider investing in? Why?