Faculty Scholarly Dissemination Grants

Title

Globalization: Two Way Street Takeovers from and into India and the New Multinationals

Department

Finance Department

College

Seidman College of Business

Disciplines

Business

Abstract

The paper examines two case studies as concomitant effects of opening of markets and prevalence of regulation. Patent Protection with a limited life has resulted in the emergence of generic drug manufacturers in India. Some of these drug manufacturers in India have been takeover targets from U.S. bidders. One of this type Piramal. Industries sold its drug development business to Abbott Inc. This is the result of imperfect labor factor markets. Globalization has forced emerging markets to open their frontiers to foreign capital and also provided indigenous emerging market firms with access to global capital markets. Thus some emerging market firms have also become bidders of companies in Europe and USA. Hindalco industries of Mumbai, an aluminum smelter and refiner acquired Aluminum can maker Novelis of Atlanta, a spin-off from Alcan of Canada. This acquisition is unique where the bidder company was smaller in relative size than the target. The two studies highlight the two way street of globalization. Flow of capital is moving in many directions as government interference is minimal in the post-Berlin War era embrace of capitalism by emerging market firms that try to stay afloat and avoid being submerged and sunk.

Conference Name

Global Summit on Doing Business

Conference Location

Lima, Peru

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