Foreign Currency Convertible Bond is a Special type of Bond issued in the currency other than the home currency. In other words, companies issue Foreign Currency convertible bonds to raise,money in Foreign Currency.

Global Depository Receipt (GDR) :
GDR (Global Depositary Receipt) is an instrument issued abroad by a company to raise funds in some Foreign currencies and is listed and traded on a Foreign stock exchange.

Foreign Institutional Investors (FII) :
1. FII can be defined as an investment made by a Non-resident in equity of domestic company without intention of acquiring management control.
2. In other words the investment is made by an individual investor or an investment fund, into the financial markets of another nation.

1. GDRs are issued to investors across the country.
2. It is denominated in any acceptable freely convertible currency.
3. GDR is denominated in any Foreign Currency but the underlying shares would be denominated in local currency of the issuer.
4. The holder is entitled to dividend and bonus on the value of shares underlying the GDR.

1. Exploiting Natural Resources:
The FDI companies deplete natural resources like water, forest, mines, etc.
As a result such resources are not available for the usage of common man in the host country.
2. Heavy Outflow of capital:
1. Foreign companies take away huge funds in the form of dividend, royalty fees, etc.
2. This causes a huge outflow of capital from the host country.
3. Not Transferring Technology:
1. Some foreign enterprises do not transfer the technology to developing countries.
2. They mostly transfer second hand technology to the host country.
3. They keep the fundamental aspects of technology with the parent company.
4. In such case, host country may not get the advantage of technology transfer and consequent economic development

Advantages of FDI:
(i) Achieving Higher growth in National Income:
Developing countries get much needed capital through FDI to achieve-higher rate of growth in National Income.
(ii) Help in addressing BOP crisis:
1. FDI provides inflow of Foreign Exchange resources into a country.
2. This helps the country to solve adverse balance of payment position.
(iii) Faster Economic Development:
1. FDI brings technology, management and marketing skills along with it.
2. These are crucial for achieving faster Economic Development of developing countries.
(iv) Generating Employment opportunities:
FDI generates a lot of employment opportunities in developing countries, especially in high skill areas.
(v) Encouraging Competition in host countries:
(1) Entry of FDI into developing country promotes healthy competition therein.
(2) This leads to enterprise in developing countries operating efficiently and effectively in the market.
(3) Consumers get a variety of products of good quality at market determined price which usually benefits the customers.

Sl.No	Basic for comparison	GDR(Global Depository Receipts)	ADR(American Depository Receipts)
1.	Denomination	It is denominated in terms of any freely convertible currency	It is denominated only in US dollars.
2.	To whom it is issued	It is issued to investors in one or across more markets simultaneously	It is issued only to investors, who are resident of US
3.	Listed in	It is listed in Non-US stock exchange such as London stock Exchange or Luxembourg Stock Exchange	It is listed in American Stock Exchange
4.	Approval	GDR issues does not require Foreign regulatory clearances	ADR Issues require approval from Securities Exchange commission (SEC) of US
5.	Mode of Expression	GDRs are normally co-related to equity shares of the issuing company expressed  in whole numbers	In many cases ADRs co-related to equity shares of the company are expressed as a fraction.
6.	Negotiation	All over the world	In America only.