Respond to the discussion prompt below. Your initial post should be supported by evidence.

Some factors I believe come into consideration when we look at the difference in FDI between India and Canada is market size, economic growth, political environment, and tax/incentive policies. Each country may face a different a FDI which stands for Foreign Direct Investment which is the record flow of cross border transactions related to a direct investment during a period of time. With this being said financial flows consist of equity transactions, reinvestment of earnings and debt transactions. The market size and potential between the countries is that India has a larger population than Canada does which brings a larger consumer market and growth ability which brings investors wanting to expand their business in this country but since Canada has richer individuals this is what makes the countries similar in FDI. India has a liberalize economy which improves ease of doing business but still has concerns regarding corruption complexities while Canada is known for a stable political environment which can attract investors. There are 5 sectors that receive the highest FDI Equity inflow in India which are started in the article “ Invest India” which states” Services Sector, computer software and hardware, trading, telecommunications and automobile industry” India works hard to stay in the pole of the rest of world same as with Canada, with two of similar FDI, India might be the best place for a company to expand because of their huge growth in the past years and how much their country is growing and expanding as a whole. You don’t want to expand to a country that is not expanding themselves. 

What are other ways you think these two countries have differently when looking into each other’s FDI?