This video shows you how inflation can affect foreign investments of a nation. When people have more money in their hand, their consumption increases, when that happens automatically price of commodities increases. Because govt cannot fully control the market. And when the price of the commodities are high that will result in high production cost because prices of commodities are the sum of input prices, cost of raw material, wages of labor, land prices and cost of capital, all these factors are related to production hence the cost of all these factors would go up. Going forward it will affect the demand of domestic commodities as well as foreign commodities. If the price of the commodities are high, then consumer spending will decrease, if domestic products are taking a hit because of this, just imagine foreign products would definitely take a bigger hit….(read more)
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Foreign investment only profit purpus investment in our country
Everyone just says deflation will cause recession, and we are supposed to just accept 8t as fact without any proof..
In any stock or securities market, when prices get low, buyers come in and buy more and prop up the price. When it is overbought, people sell it off and the price comes down.
Why wouldn't that market force exist in the general economy?
Also, an economy stimulated on loans isn't necessarily good. Why can't it be funded by savings?
And why is inflation good but deflation bad?
Inflation favors borrowers, but why is it so bad for deflation to happen, which favors lenders?
Are we supposed to swallow that only one side of the coin of a dual-force self regulating market economy is good?
And what's so great about foreign investments? Noone should care that it is foreign. You can just as easily have domestic investments. Domestic investments means the profit stays within the country, instead of getting pulled out of the country.
Foreign investments help for the se reason that I vestments help. But to overemphasize foreign investments is myopic for the short run. All of those profits they're making could have been made by domestic investors.
Hello sir, thank you for the simple explanation. I ,however have a doubt: Why is there an increase in FPI during inflation ? The example you have given about McDonalds pertains to FDI right? But it is seen that during inflation, FPI is favourable?. Why is that? Will be really grateful if you reply. Thank you once again 🙂
But you said FDi is long term investment on compnies manufacturing or business inflation is good bcz demand shall be there for these FDI product And service
Also inflation is usually a short time phenomenon how it affect terms FDi which takes months or years
Sir please……
Make videos on Indian polity….
Sir can you explain the farmer bills and its merits and Demerits. This would be helpful
Love from Pakistan sir Amit. Thanks for making your content. Always completely watch ads on your videos.
Sir Please share PDF of lectures.
Ur voice is so ….. goood♨️
Explanation was good. What happens to inflation if FDI increases
very clear, thanks.
This kind of channel is rare these days, straight away subscribed
Really thank you so much
Sir plz do make more videos on economy…u are realy amazing tqsm …great explanation
A was there when amit sengupta started this channel
Best explanation ever ✌
Sir pls do some more videos related to upsc
Even if the cost is high in inflation, but I guess the value of currency will be less. Like earlier if 1$=60 ruppees, then during inflation it becomes 70ruppees. It has just shifted the scale of measurement. Doesn't affects the foreign investments right? :/
Good but if you could make it little bit slow.
Thanks sir very much
Sir, pls make a vedio of FPI vs FDI
Really your videos are good and explanation was good
But your are talking very fast and it's hard to catch up
I am really glad if u do it little bit slower
I am civil services aspirant
How simply you explained the terms which seems complex at first sight. Thanks
really helpful…. awsome video. Thank u sir.
I said to my friends please watch amitsengupta classes it is as simple as… awesome explanation..I seen ur all geography NCERT classes thank you sir
awsome explanations . please make videos on core conceptof economics asked in ssc cgl
You are a real teacher……
Let me tell you how does it work, I read a topic again and again for hours and it seems like everything is written in French. I watch your video as short as of about 2-3 minutes.. the whole world starts making sense. Having said that, can you please make a video on Ordinance? Thank you on behalf of all those who want to learn, for making a difference in our lives.
The best thing about your channel is simple and precise explanation.
I admire all your videos specially Summary on NCERT's.
thank you so much for your valuable support.
Amit sir you r too good big fan of yours
thank u Amitbhai. information is very useful.