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FDI also facilitates technology transfer and development of organizational and managerial skills and practices (Lall, 2000; OECD, 2000; Zhang, 2001b).

According to Mr R.C. Agarwal, chairman and MD of Vishal Retail 'The move of allowing FDI in multi-brand retail would instill new life in the local retailers expansion plans by bringing in international best practices of organized retail in the country,'

Such joint ventures with multinational retail giants will allow Indian companies to acquire the technical and managerial know-how especially on the supply chain and back-end operations (Sinha, Vivek Hindustan Times, 07/28/2010)

Vera Belaya* and Jon Henrich Hanf (2010) did an extensive study in the supply chain management concepts influenced by foreign investors in the Russian agri food business. Food retailers such as Wal-Mart, Metro, Auchan and Carrefour already operate in Russia.

While these international food producer and retailer companies while entering the new markets often bring in their established supplier relationships with them in order to make products affordable for a large number of consumers.

When retailers as well as processors enter a new country there are challenges faced by them to build up their procurement and distribution systems. Here they may take their business models from their home countries into the newly entered markets thus exporting their modern management concepts. This includes supply chain and quality Management.

The production facilities of the food processors are often built close to the source of raw materials wherein there is a rapid consolidation of all the related sectors and the process of integration continues for the smaller companies into bigger groups (Serova et al. 2006).

The pressure of good quality pressure from the retail sector combined with competitive pressures drives the firms to upgrade their technology and equipment focusing on international quality standards with quality ingredients (Ozhidar 2007).

Another tendency is for the major companies in the sector to acquire the smaller players to consolidation assets this enables the retailers to easily adjust to the new quality and production requirements of international standards. This has its problems since there could be a lack of large-scale wholesalers which means that retailers are forced to rely on many small suppliers.

The international retailers need to be met with an immediate response from local players who need to be quick to learn the modern retail trade methods and forms. The domestic retailers therefore need to expand their operations thereby building their strength in the supply and distribution chain network in order to excel in the customer relations and capture a larger more robust share of the market. However long distances combined with bad road infrastructure, resulted in high logistics costs, thus challenging the Russian rural suppliers.

Bergsman et al. (2000) proved that FDI brings not only production facilities and technology transfers along with capital but also the opportunities of employment, new job skills and management expertise. The investor has to provide the proper organization structure in terms of subsidiary or partners including the hierarchy, and lines of responsibility to exploit the system competitively. This implies the transfer of management technolo