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1. Introduction
In foreign direct investment, companies used their funds to purchase machines and
factories in other countries. The multinational companies in the United Kingdom used FDI
strategies to enhance their businesses in other countries. In the year 2000, the total amount of
foreign direct investment was $3.1 trillion. Vodafone invests Rs 47,700 foreign direct investment
in the market of India because the market is best for the underlying company to provide its
services. In India, Vodafone is the second largest company that provides telecommunication
services to the individuals. The UK based Vodafone Company is the parent company of
Vodafone India and the FDI of Vodafone in India is the first largest foreign direct investment.
The total customers of the underlying telecommunication service are 200 million. Vodafone
Company in India provides 2G, 3G, 4G and internet of things (IOT) (CHRONICLE, 2016).
According to Xia et.al, (2014), the multinational companies in the United Kingdom are
involved in FDI strategies because these strategies help to increase the profitability of companies
and they can expand their businesses in several countries. The main reason to involve in FDI
strategies is that it also provides several benefits to the companies. Vodafone Company in the
United Kingdom provides a deep focus on FDI strategies to increase the business of a company
and the availability of telecommunication services in other countries. Some of the most
important benefits achieved by Vodafone by using the FDI strategies are as follows:
Companies in the United Kingdom have faced a lower cost of labor in other countries.
For instance, in India, the labor cost is too low and Vodafone Company focuses on FDI
Vodafone Company does not need to transport the raw material from the UK to other
FDI strategy also reduces the transportation cost of the company. For instance, when
Vodafone Company establishes its business in the market of India, it can easily provide
the telecommunication services and do not need to import anything from the UK.
FDI strategy will also increase the local knowledge of Vodafone Company and it can
According to the study conducted by Singh (2016), the foreign direct investment strategy
of Vodafone in other countries creates several jobs and also increases the output of the company.
If the company invests the money from abroad, it can easily provide higher wages to the
individuals and can also improve the working conditions. In developing countries, Vodafone
Company is more conscious to increase its image by providing best services to the customers.
Vodafone will provide long-term capital inflow to the other countries that are why it cannot
withdraw the amount of investment. When Vodafone Company uses FDI strategy in other
countries those countries can take the benefit of expertise and improved knowledge (Gelb et.al,
2017).
The foreign direct investment of Vodafone has increased from the past several years due
to several reasons. The main reason is the lower cost of transportation which provides help to the
company in expanding its business. The technology has increased and every company used the
latest technology to improve its performance. The improved technology also reduces the cost of
Research Questions
The existing research provides the information about the FDI strategies used by the
Vodafone Company. The investment of the underlying company also helps to increase the
economy of the developed and developing countries. It is necessary for the company to invest its
money in the countries that have the largest economy. FDI also help in increasing the economic
growth of the United Kingdom. The dissertation will provide the answers to the two most
1. Which countries are directly affected by the Foreign Direct Investment strategy of
2. Is Foreign Direct Investment strategy will provide a positive contribution to the economy
The research will be divided into two different parts. In the first part, the researcher will
gather the information by using different resources such as books, internet, newspaper, television
etc. with the help of these sources, the researcher can get the accurate information and will
provide the answers in detail that what are the foreign direct investment strategies used by the
companies in the united kingdom to expand their businesses. The foreign direct investment
strategies of the multinational companies in the United Kingdom will increase the economy of
the underlying country and also plays an important role in the success of the country. In the
second part, the researcher gathers the comments of participants and conducting different
interviews to analyze the opinions of individuals. Every person has different thinking pattern.
The accurate data will be gathered by using the books and internet sources. Every participant will
provide his own experiences but the data from the internet sources will be more accurate. There
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are also several specialist websites that can gather all the relevant data from the research of the
The collected data includes the written and visual representation. The most important
second part of the research is semi-structured interviews. The main purpose to collect the data
from several sources is that the researcher tries to gather the more information because each
source provides the different opinions to the researcher. It is necessary for a researcher that he
must identify the experience of the participant. It is also necessary for the researcher to separate
the data of females and males because the opinions of both are different from each other. There
is no restriction for the researcher to gather the information from different sources. The
interviews are conducted by the participants which include two men and four women. The
opinions of participants are different from the others. The participants focus on the Vodafone
Company that makes a large investment in a country. After the detailed research, it is assumed
that Vodafone Company in the United Kingdom invests a large amount of money in India. India
is suitable company according to the population and its economy is the fastest growing economy.
It is the best option for Vodafone Company in the United Kingdom that it must invest in the
economy of India because the economy of the underlying country is the fastest growing economy
and it will provide several benefits to the Vodafone Company (Thomas et.al, 2015).
Ethical issues
There are several ethical issues arise in the underlying research which includes:
Participants Consent
The participation of individuals is required in research but it is necessary that all the
participants must be voluntarily involved in the research. There must be no coercion to the
individuals to enter in the research. The individuals will be involved in research when the topic
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becomes attractive and related to their interest. It is crucial to provide authority to the individuals
to enter in the research so they will participate voluntarily. All the participants must be informed
about all the risks of research and they must know all the procedures and policy of research.
There can be some risks involved in research and the participants must exhibit their consent. All
participants should be informed before the interview and they must agree to provide their
opinions about the research questions. Researchers focus on the ethical standards and do not
involve the participants in a situation in which they can feel the risk of any harm due to their
participation. It means that participation of individuals must be free from all types of risks and
harms.
Personal Safety
The personal safety of researcher is also necessary. The researchers can find out the
participants with the help of their personal connections. They must have more personal
connections so that they can gather a large amount of data. The harm can be psychological or
physical and the safety from harm must be the first priority. Ethics is necessary for social
research because every person has a different idea and thinking and also the participant can
provide harm to the researchers. All the research proposals must follow the ethical standards
however these standards are diverse in different countries. The researchers focus on ethical
standards which will provide the safety to them and they become aware of the rights of
participants.
Data Protection
The participants provide the personal data for the research; the researcher must provide
protection to data which will gather from the participation of individuals. The researcher focuses
on different steps to ensure the privacy of participant’s data. All researchers provide a guarantee
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to the participants that their data will be confidential and no one has the right to use that data.
The individuals that are directly related to the research are liable to access the data. The
individuals that are not the part of a research cannot overview the data which is provided by the
participants. Research must focus on the principle of anonymity which means that all the
participants in research must be unknown in the whole research and researcher does not have a
Every participant wants his anonymity and the standard of anonymity clearly identifies
that researchers will focus on the privacy of the participant. It is difficult to hide the participant
especially in that research which includes the comments of participants multiple times.
Researchers should focus on all the ethical issues. The recording of interviews and different
notes must be safe and researcher give full protection to the data of the participants. All the data
should separate on the basis of age and gender which will provide the identity of the participants.
Researcher Interest
There is a restriction that the researcher must not be the employee of Vodafone Company
in the United Kingdom, however; it is also restricted that any relative of researcher must not be
the employee of the underlying company. The researcher cannot use the personal contacts to
gather the information about the research. It is also necessary for the researchers that they should
perform accurate research. There is also a need for the procedure that all the researchers must
focus on the ethical issues when they make research plans. Different organizations and
institutions have prepared Institutional Review Board which indicated that the researchers must
focus on all the ethical issues. Institutional review board provides the ethical suggestions to the
researchers and also describes all the steps that are necessary to provide safety to the right of all
the participants. The institutional review board also provides protection to all the companies and
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researchers from all the legal implications. Researchers do not neglect the ethical issues and must
References
CHRONICLE, D. (2016). Vodafone invests highest FDI of Rs 47,700 crore in India. Deccan
Chronicle.
Gelb, S., Calabrese, L., & Tang, X. (2017). Foreign direct investment and economic
transformation in Myanmar.
Sekaran, U., & Bougie, R. (2016). Research methods for business: A skill building approach.
Thomas, J. R., Silverman, S., & Nelson, J. (2015). Research methods in physical activity, 7E.
Human Kinetics.
Wang, J., & Wang, X. (2015). Benefits of foreign ownership: Evidence from foreign direct
Xia, J., Ma, X., Lu, J. W., & Yiu, D. W. (2014). Outward foreign direct investment by emerging
market firms: A resource dependence logic. Strategic Management Journal, 35(9), 1343-
1363.