Question
Explain the merchandising benefits and challenges of FDI.
Answer :
Word Count : 580
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Foreign Direct Investment (FDI) plays a significant role in shaping the merchandising practices of the apparel industry, especially in emerging economies. It refers to investment made by a foreign company or individual into business operations in another country, bringing not only capital but also technology, expertise, and global exposure. In the context of apparel merchandising, FDI creates opportunities for improved sourcing, production efficiency, and market expansion, but it also introduces several operational and strategic challenges. One of the major merchandising benefits of FDI is access to advanced technology and modern production techniques. Foreign investors often bring innovative machinery, design software, and efficient supply chain systems, which enhance product quality and reduce lead time. This allows apparel firms to respond quickly to changing fashion trends, an essential requirement in merchandising. Improved technology also supports better inventory management and forecasting, leading to reduced wastage and optimized stock levels. Another important benefit is the integration into global supply chains. FDI enables local apparel businesses to connect with international buyers, suppliers, and
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