Question

why are Chinese and Indian Companies interested in international acquisitions?

Answer 1

International acquisitions will bring the changes in the organization in different areas. it will provide benefits to the organization, employees. Organization can make use of new technologies, Production operations becomes more efficient and effective , Cost of production process becomes less , Access to new market , access to foreign capital, Garnering market share & for employees they can upgrade their knowledge and skills.Chinese and Indian Companies interested in international acquisitions because acquiring the upstream or downstream will provide these firms to strengthen and provide the support for their own industries.

• Gain access to overseas market: Majority of the Indian and Chinese firms seeking overseas market major motivation for investing foreign country. Chinese manufacturing firms gains the access to international market by export similarly Indian IT corporations gets close to the potential clients as important reason for acquisitions.
• Access to resources: The Chinese companies wants access the minerals, energy, raw materials & food which will support their growth in their economy & also provide the customer needs. China National Petrol Corporation and China National Offshore Oil Corporation are typical firms in this category & India's Oil and Natural Gas Commission has also some example.
• Technology: For the Indian and Chinese companies , acquisitions will decrease the risk of using innovative techniques for managing the financial risk and make use of the high technology and software services of other country.