Open AccessInternational Joint Venture (IJV) in emerging economies: Case Study of Automotive Industry
Author(s) -
Khairun Nadiyah,
Vuk Vojisavljević,
Kifayah Amar
Publication year - 2020
Publication title -
iop conference series. materials science and engineering
Language(s) - English
Resource type - Journals
eISSN - 1757-899X
pISSN - 1757-8981
DOI - 10.1088/1757-899x/885/1/012062
Subject(s) - automotive industry , emerging markets , multinational corporation , foreign direct investment , business , attractiveness , international joint venture , industrial organization , investment (military) , destinations , quality (philosophy) , international trade , joint venture , economy , commerce , tourism , economics , finance , engineering , aerospace engineering , psychology , philosophy , epistemology , politics , political science , psychoanalysis , law , macroeconomics
International Joint Venture (IJV), a popular form of Foreign Direct Investment (FDI), is a favourite mode for automobiles multinational companies (MNCs) to expand into new markets, especially emerging economies. However, many things are considered by MNCs in selecting investment destinations, including industry growth and the quality of destination countries. Therefore, emerging economies need to show their attractiveness to attract MNCs to invest there. This research has analysed the growth of the automotive industry in two emerging economies, India and Indonesia, and its economic impacts, and provides information on the contribution of the IJV to the host country and explains the attractiveness of the two countries, particularly in the automotive field. The findings on the research are useful in giving consideration to MNCs to invest in both countries, especially in the automotive field. Furthermore, it also provides information to emerging economies about the contribution of the IJV company to the host country.