Theory and Practice of International Business: Case Study of JCB in India

Theory and Practice of International Business

Contents
Overview.....................................................................................................................................................3
Answer 1:....................................................................................................................................................3
Answer 2:....................................................................................................................................................4
Answer 3:....................................................................................................................................................4
Answer 4:....................................................................................................................................................5
Answer 5:....................................................................................................................................................6
References...................................................................................................................................................7

Overview
The main aim of this assignment is to elaborate the answer the question given in the case study
of JCB in India. The first question will give information regarding expansion of JCB in proposed
market within the case study. The second answer will be linked with entry mode in which the
decision of JCB of entry in India will be demonstrated. The next answer will demonstrate the
reason behind choosing the technology to escorts. Fourth answer will include the potential
disadvantages of JCB’s joint venture with escorts. At last, the final answer will elaborate the
advantages of gaining full control of the Indian Joint Venture in 2002. There are various
drawbacks mentioned under this assignment towards benefits of attaining full control of the
Indian Joint Venture.
Answer 1:
As per case study, it has been found that JCB was intended to make their process into this
foreign market. It was good to develop a joint venture in order to face issues related to the
political, legal, cultural and common lack of domestic knowledge confronts developed by their
entry in to different environment. Along with that the major reason behind entering in to the
market of India by JCB is construction market. it is the core belief of JCB that the market of
India were considered as being sympathetic for investments and cold advantages then in the
extensive to a huge level. it has been found through case study that they also did not desire to
invest in India in a huge way since they could develop a organization that may not have liquidity
to handle confronts. JCB has taken this action due to surety of the development of the market of
India. JCB believed that they required to be established before their competitors and it can be
seen by them that the potential profit will come certainly. This decision has taken sense because