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Yamaha bikes to be built here from next year

If Yamaha don't have any share in this joint venture then they will be already making maximum profits from CKDs, license fees and royalty. So, it's not all the wealth will remain in country, without shares or higher license & royalties there will be no incentives for Yamaha to transfer technology.

It will come down to the cost as usual (of importing components) and no real economy of scale achieved.

Bd gets what it pays for....token headline with no real substance.

FDIs do not hurt our own initiatives. BD people are inept in doing R&D on mechanical or electrical products, and there are millions of these products throughout the world. So, when a BD local wants to invest in a technology factory, he has to import the machines at a high price. Without so much of investment money in dollar, it is difficult to properly industrialize in such a situation. On the contrary, FDI companies come with their readily available technologies, machines, know-how, experience as well as market.

So, it does not hurt the country if the FDI guys come and invest. However, I must say, no country has ever industrially developed with just FDI and without a big effort by the local entrepreneurs and investments. However, FDI works as a catalyst for further industrial development. FDI factories start with the imported CKD parts. But, gradually, they switch to locally produced components once the local people show aptitude at producing goods as per the FDI specifications.

This is how new factories are built, industrialization progresses, and many millions of people gets productive employment. However, you will be surprised to know that in a xenophobic Japan, the FDI presence is almost nil. However, the Japanese sacrificed their personal/family lives and worked very hard to do R&D and build up local technologies that propelled them to a top economy.

I believe BD people cannot just emulate the Japanese. So, FDI will help it to quick-start industrial development.

Well there was major loans and investment from US into Japan for 20 years that helped Japan as well.

Accounting concept of "FDI" just did not exist back then yet....it is more a post cold war standard.

Japan also of course already had experience with various forms of industrialisation already before ww2, so the know-how jump effect is not quite the same as it is with developing countries today which do benefit from it big time.
 
If Yamaha don't have any share in this joint venture then they will be already making maximum profits from CKDs, license fees and royalty. So, it's not all the wealth will remain in country, without shares or higher license & royalties there will be no incentives for Yamaha to transfer technology.

There is hardly any 'technology' that needs to be transferred.

Locally Walton already has this 'technology'
 

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