ABSTRACT
Foreign controlled enterprises (FCEs) are generally considered to be better placed to tap international markets than their local counterparts in view of their captive access to the information and marketing networks of their parent enterprises (de la Torre 1974). The Indian government has given due recognition to this contention and extended additional incentives to induce FCEs to export a greater proportion of their output from India. In a significant proportion of cases, export obligations were also imposed at the time of entry or expansion. Because of these factors one could expect the export performance of FCEs to be better than that of their local counterparts. But the empirical analysis in Chapter 4 did not reveal any statistically significant difference between (average or weighted) export performance of FCEs and LCEs in forty-three Indian manufacturing industries.
