IMPACT OF CHANGE IN INTEREST RATES ON INVESTMENTS - WITH SPECIAL REFERENCE TO CHENNAI CITY

Abstract

Globalisation and Foreign Direct Investment (FDI) are critically essential to all developed and developing economies. In fact, these crucial components are also necessary for the success of today's underdeveloped economies. Any nation can benefit from factors' such as easy access to markets, new ideas, and technological advancements. Today, every nation on earth is looking for foreign and international investors. Recent trends indicate that India is currently only second to China in terms of favoured investment locations. The developing nations vying for investment are China, Singapore, Malaysia, Russia, and Brazil. Most of them are vying with the USA and Europe for contracts. Globalisation and FDI are critical elements in the development of industrialised, emergent, and undeveloped economies. The root causes are: the introduction of novel products, novel skills, readily accessible markets, and modern technology to the host countries. Every country on earth makes a substantial contribution to the encouragement of international / out-of-country investors and their investments. Interest rate is the main factor influencing investments. Interest rates in the contemporary environment fluctuate due to the nation's economic position and world markets. The impact of fluctuating interest rates on investments is the main focus of the current study.

Keywords: Globalization, Investment and Interest rate.