The Impact of the Global Financial Crisis on the Presence of Chinese and Indian Firms in Europe - Softcover

Hay, Francoise; Milelli, Christian; Shi, Yunnan

Softcover

ISBN 10: 1845195086 ISBN 13: 9781845195083

Publisher: Liverpool University Press, 2011

Synopsis

This book investigates the presence of Chinese and Indian companies in Europe and the impact that the current global financial crisis has had on their corporate behavior and strategies. Have investments been canceled or postponed? Has the crisis created new opportunities for investment? Is the behavior of Chinese and Indian firms similar in these circumstances? In addressing these questions, the authors used a proprietary database encompassing more than 1,500 investments - greenfield operations, mergers-and-acquisitions, joint ventures, and horizontal/vertical extensions - made throughout Europe by companies from China (both mainland China and Hong Kong) and India since the 1990s. Comparisons are made according to several criteria - e.g. spatial patterns, modes of entry, sector, and function distribution - to pinpoint differences and likenesses. In addition, face-to-face interviews were conducted in order to elaborate congruent case studies in traditional sectors (textile/clothing), or in new sectors (software for Chinese companies). The crisis has had an impact on both investors in the following terms: lower amounts of investment, more merger-and-acquisition deals in absolute and relative terms, more focus on the largest economies (particularly the UK), a targeting of specific assets, critical technologies, international management capability, renowned brands, and sale networks. In conclusion, in the years following the global financial crisis, Indian investments in Europe have been more significantly affected than Chinese investments, due, to a large extent, to Chinese companies' support from the State.

About this title

About the Author:

Françoise Hay, Associate Research Fellow at the Centre de Recherche en Economie et en Management (National Centre for Scientific Research and University of Rennes 1). Christian Milelli, Research Fellow at EconomiX (National Centre for Scientific Research and University of Paris West, Nanterre). Yunnan Shi, Senior Lecturer at the University of Rennes 1 and Researcher at the Centre de Recherche en Economie et en Management.

Review:

"As outward investment from the non-triad countries continues to increase its share of global outward investment, it is important to understand the extent to which such investment is sustained in the triad host regions and countries, and how such investment ventures evolve over time. This is necessary in order to assess the impact of such investment on host societies. Such understanding is also of benefit to home country firms contemplating and planning strategies for overseas investment. Exploring the effects of the global financial crisis on such investment is a crucial element in seeking to estimate future investment flows and their likely impacts."  —Louis Brennan, Proposer and Chair, COST Action IS0905 (European Cooperation in Science and Technology) on ‘The Emergence of Southern Multinationals and their Impact on Europe’, and Director of the Institute for International Integration Studies, and Associate Professor in the School of Business at Trinity College, Dublin, Ireland, the Journal of Economic Literature (American Economic Association)

About this edition

• Publisher: Liverpool University Press
• Publication date: 2011
• ISBN 10: 1845195086
• ISBN 13: 9781845195083
• Binding: Paperback
• Number of pages: 91