Introduction

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which consequently led to their first departure (for non profitability). As well Coca Cola departured India after harsh disagreements with the government.

Why after all did Pepsi enter again, facing a country with such strongly adverse feelings towards foreign companies – which is rooted in Indians history of colonialistic times when the British, French and Portuguese were extracting the country‘s recources ‚‘its wealth‘ without returning noticeable benefits to its economy.
Moreover they feared that national companies would not be able to compete with foreign investors and as a result of this high artificially prices and profit margins reduced incentives for national companies to enter. This almost irrepairable bad approach towards foreigner went even that far that journalist widely reported that PepsiCo had a CIA connection aimed at undermining India‘s independence.

However returning to the argument of PepsiCo having too many concessions or not, first as should have ...

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had been growing rapidly (by 1990 a whole of 3 billion bottles a year consumption expecting to quadrupple during the 1990s. Furthermore India‘s population was expected to grow – even surpass China – and researchers have even estimated India to become an economic giant in the future as the worlds most poplated country which of course enhanced foreign investments as major sales are expected in the long-run.

Now, PepsiCo entered the market with great potential for the future they did a great step by only investing $15 million, which was a rather small amount compared to other foreign investments. This low investment reduced the risk the company was already to taking to a large extend ...

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