India And China's New Motives For Foreign Investment

By Professor of Strategy and International Business Klaus Meyer
Many recent large projects by Indian and Chinese investors don’t seem to fit the usual pattern of what drives foreign investment. Traditionally, the primary motive for most foreign investment projects is either to access new markets, to access resources (minerals, energy or agriculture) or to enhance operational efficiency (e.g. through lowering labor costs, improving logistics, or reducing tax burdens). But for many recent projects out of China and India, their primary aim is to build the capabilities of the investing company itself. How will they manage these projects, and how will we be able to tell if they’re doing a good job? Read more on Forbes.com.