Through the eyes of an insider: Case study of an MNC subsidiary in an emerging economy

Abstract

The government of India, during the late 1960s, was exerting pressure on multinational corporations throughout the country to tailor their activities to suit domestic needs. During this period, most foreign oil companies, such as Burmah Shell, Mobil, Caltex, Balmer-Lawrie, and a few large foreign engineering companies, such as Jessop, Bird, Braithwaite, Richardson & Cruddas, were all nationalized in phases. The government then imposed lots of restrictions on many industries importing goods, and levied higher import duties on a few selected items. These actions were taken by the government to justify the development of local industries, and to generate more domestic employment for large numbers of unemployed, though educated, youth. However, by the 1990s, the government of India had to come to terms with the activities of the World Trade Organization. All trade barriers and restrictions previously imposed had to be removed to allow much needed foreign exchange for the development of the economy to be raised. This meant more business opportunities for some of the multinationals that had been closely observing government policy changes.