Hyundai Motor Company and Kia Motors Corporation Consent Decree
Korean Foreign Direct Investment in India : Hyundai Motors’ Industrial Cluster
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Transcript of Korean Foreign Direct Investment in India : Hyundai Motors’ Industrial Cluster
Korean Foreign Direct Investment in India :
Hyundai Motors’ Industrial Cluster
Jongsoo Park
Professor of Economics,
Gyeongsang National University
• Trends and performance of the FDI • Determinants of FDI• Drives and deterrents of FDI in India• FDI with Industrial Cluster • Korean FDI : HMI case
Contents
Korean FDI in India
0
50,000
100,000
150,000
200,000
250,000
300,000
350,000
400,000
1983
1985
1987
1989
1991
1993
1995
1997
1999
2001
US
$ th
ous
and Total Approved
Investment(US$thousand)Total actualInvestment (US$thousand)
FDI with Industrial Clusters
• What is cluster?“geographic concentrations of interconnected companies and i
nstitutions in a particular business field” (Porter,1990).
• FDI with industrial clusters should transfer technology more effectively than dispersed one .
•Korean FDI in India : HMI case
: Spillovers of FDI & industrial clusters
HMI's Industrial Clusters
Important factors of success of HMI
• Greenfield investment &Greenfield investment &
• launch together with established launch together with established Korean subcontractors strategyKorean subcontractors strategy
• Promote the FDI in industries and products with high technology, economies of scale, substantial domestic content.
• The existence of functioning industrial clusters is an indication of the sophistication & competitiveness of a business environment.
What should guide India's FDI policy?
Summary and Conclusion