Multinational enterprises motivational factors in capitalizing emerging market opportunities and preparedness of India

Suranjan Bhattacheryay

Journal of Financial Economic Policy, 2020, vol. 12, issue 4, 609-640

Abstract: Purpose - The purpose of the study is to heighten intrinsic advantages, dis-advantages, being enjoyed by emerging country firms and the motivational factors that influence multinational enterprises (MNEs) to establish long-lasting relationship with emerging economies. The study also highlights the steps initiated by India by executing reform friendly foreign direct investment policy to attract foreign investments. Design/methodology/approach - The study is descriptive in nature, based on secondary data, sourced from various reports of India Government and the Central Bank of India. Findings - The Indian economy has undergone profound and substantial liberalization and made sweeping reforms in most of its sectors besides adopting internationalization policy agendas to upkeep their domestic firms in “going global”. However, India needs to amend the existing restrictive labour and land laws besides providing efficient employable workforce. India further needs a less cash economy, which ultimately marches into digitized credit system to build India as one of the best attractive countries in the eyes of global investors. Research limitations/implications - As the study is based on secondary data, it may be general, in explicit and may not be perfect in concluding decision. Social implications - MNEs play a major force in driving globalization of the world economy. However, MNEs face a variety of complex and multiple challenges in establishing strategic control over emerging economies. In spite of all odds, MNEs generate and capture value to host country firms by applying unique business models besides combining with or buying a foreign business. Originality/value - Investment flows to India for the past 15 years (2005-2019) are critically analysed to justify research questions. Further, in the literature “Preparedness of India”, a lot of new interesting insights, incorporated.

Keywords: Credit; Foreign exchange; Financial economics; Financial meltdown; Financial risk and risk management; Capital and ownership structure; O10; D04; K31; O14; F01; M16 (search for similar items in EconPapers)
Date: 2020
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://www.emerald.com/insight/content/doi/10.110 ... d&utm_campaign=repec (text/html)
https://www.emerald.com/insight/content/doi/10.110 ... d&utm_campaign=repec (application/pdf)
Access to full text is restricted to subscribers

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eme:jfeppp:jfep-01-2019-0010

DOI: 10.1108/JFEP-01-2019-0010

Access Statistics for this article

Journal of Financial Economic Policy is currently edited by Prof Franklin Mixon

More articles in Journal of Financial Economic Policy from Emerald Group Publishing Limited
Bibliographic data for series maintained by Emerald Support ().