Business Environment by Pearson

Foreign Investment | 313

As observed above, the LCRs and export performance requirements (EPRs) have prompted the

foreign enterprises to transfer and di use some knowledge to the domestic enterprises, in order

to comply with their obligations. Similarly, the DERs may facilitate the quick absorption of  le

knowledge that was brought in by the foreign enterprises, which is an important prerequisite of

the local technological capability, as is evident from the case studies of the Indian two-wheelers

industry, where Indian JVs with foreign  rms were able to absorb knowledge that was brought

in by the foreign partner, and eventually become self-relian ...