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Economic Management Journal

July 2013, Volume 2, Issue 3, PP.66-75

Study on Indian Private Enterprise


Internationalization and Its Implication for
Chinese Going Global Strategy
Lili Dong
International Business School, Beijing Foreign Studies University, Beijing, 100089, China
Email: donglili@bfsu.edu.cnljaxy@sina.com

Abstract
OFD (Outward Foreign Direct) investment from developing economies has achieved significant development recently. As the two
largest developing countries, both India and China take various measures to encourage local companies to internationalize.
Statistics show that multinationals from the two countries are quite different from each other in the ownership, core competency,
and entry mode choice. Generally speaking, Indian private enterprises are doing much better than their Chinese counterparts with
the advantage on the micro competition; in addition, India government has achieved more in encouraging domestic private
companies to invest internationally, from which Chinese companies can benefit. In contrast to China where the state owned
enterprises play the leading role in internationalization, while the private companies are weak in most sectors. This fact is kind of
surprising because the private companies are usually more efficient than the state owned sector in Chinese domestic economy.
This paper will start with the comparison between Indian and Chinese enterprises internationalization, then explore the underlying
causes for the difference. Based on the above analysis, suggestions for the Chinese private companies going global will be
formulated.
Keyword: China; India; FDI; Private Enterprise

100089

2000

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1.1

Vale
2010 12 2008 1
18 16 13
Vale (The Indian School of Business) 2009
2006 24 2
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2007

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Novelis

2007

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2006

1ValeColumbiaCenter

on Sustainable International Investment, School of Management at FudanUniversity. Chinese Multinationals Gain


Further Momentum. Shanghai and New York, 2010: 2
2ValeColumbiaCenter on Sustainable International Investment, IndianSchool of Business. The Growth Story of Indian Multinationals.
Hyderabad and New York, 2009: 2
3 2008 2 13 (Tata Communications Ltd)
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1 2000-2007 25

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ONGC Videsh

Greater Nile Oil Project

2002

677

Tata Tea and Tata Sons

Glaceau

2006

600

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Greater Plutonio Project

2004

600

Opto Circuits India Ltd

Eurocor GmbH

2004

570.3

Dr. Reddys

BetapharmArzneimittel GmbH

2006

565

Suzlon Energy

Hansen Transmissions

2006

10

522

Kraft Foods Ltd

United biscuits

2006

11

431.2

Tata Tea

Tetley Group

2000

12

324

Ranbaxy Laboratories Ltd

Terapia SA

2006

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323

ONGC Videsh

Sakhalin-I PSA Project

2000

14

300

Ispat Industries Ltd

Finmetal Holdings

2005

15

289.2

Videocon International

Thomson SA(CRT business)

2005

16

283.7

Tata Steel

NatSteel Asia Pte.

2004

17

254.3

VSNL Ltd

Teleglobe International Holdings Ltd

2005

18

234.7

Mtrix Laboratories

Docpharma NV

2005

19

220

Tata Coffee

Eight oClock Coffee Co.

2006

20

210

Susken Communication Tech Ltd

BorniaHightec

2006

21

209

Ballarpur Industries Ltd

Sabah Forest Industries

2006

22

191.2

Reliance Infocomm

Flag Telecom

2003

23

185

Seagate Tech Ltd

Evault Inc.

2006

24
184.6
Citrix Software India Pvt. Ltd
Sequoa Software
2001

25
175
Tata Steel Ltd.
Millenium Steel Plc
2005

: Lakhwinder Singh, Varinder Jain. Emerging Pattern of Indias Outward Foreign Direct Investment under the Influence of
State Policy: A Macro View. MPRA Paper No.13458, posted 17. February 2009: 10

1.2
1.2.1

2007 10 3COM

2006
30% 46%
2
(Stephen H. Hymer, 1934-1974)

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World Investment Report 2004the Shift towards Services. United Nations New York and Geneva, 2004: Annex Table A.I. 13
- 69 www.emj-journal.org

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- 74 www.emj-journal.org

REFERENCES
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Lakhwinder Singh, Varinder Jain. Emerging Pattern of Indias Outward Foreign Direct Investment under the Influence of State
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[5]

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1 1973-

2005.9-2009.2
2000.9-2003.7
1990.9-1994.7
Email: donglili@bfsu.edu.cn

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