1. Why did JCB originally enter India via a joint venture with Escorts? What were the advantages of that joint venture? What were the limitations and risks? 2. In 1999, JCB took a majority stake in its Indian joint venture with Escorts. In 2002, it acquired all outstanding shares, establishing a wholly owned subsidiary. Why did JCB pursue this strategy? What were the benefits? Can you see any potential downside? 3. For years, India placed significant limits on inward FDI in order to encourage the growth of an indigenous industry. Why do you think it relaxed many of those regulations at the end of the 1990s and early 2000s? What were the benefits to the India economy? Was there a downside?

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter15: Contracting, Governance, And Organizational Form
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1. Why did JCB originally enter India via a joint venture with Escorts? What were the advantages of that joint venture? What were the limitations and risks?
2. In 1999, JCB took a majority stake in its Indian joint venture with Escorts. In 2002, it acquired all outstanding shares, establishing a wholly owned subsidiary. Why did JCB pursue this strategy? What were the benefits? Can you see any potential downside?
3. For years, India placed significant limits on inward FDI in order to encourage the growth of an indigenous industry. Why do you think it relaxed many of those regulations at the end of the 1990s and early 2000s? What were the benefits to the India economy? Was there a downside?

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