International Business in India

Running Head: ECONOMY 0
INTERNATIONAL BUSINESS
INDIA
DECEMBER 20, 2018

BUSINESS 1
Executive Summary
In this report, India is taken as a country due to the new emerging market where rapid GDP
growth attracts various investment from foreign countries due to various opportunities and
potential resources. This report focuses on many key aspects such as national resources, FDI,
trade policies, barriers for entry and exit, factor endowments and so on.
India is a country in South Asia, which has largest democracy in the world where the
constitution was, came into force on 26 January 1950. The globalization policy came to India
in 1990 just after the liberalisation plan. The Republic of India is considered one of the
emerging superpowers of the world. For a developing economy kike that of India, FDI plays
a significant role in bridging the gap between domestic savings and investment so that
sustainable economic development can be taken out.

BUSINESS 2
Contents
Introduction..............................................................................................................................3
Political, Socio-cultural, Economical and Technology advantages.....................................3
Resources in competitive advantages.....................................................................................5
Impact by Foreign currency and exchange...........................................................................6
Country existing trade policies, blockades and inducements...............................................6
Current level of FDI.................................................................................................................7
Conclusion and Recommendations.........................................................................................8
References.................................................................................................................................9

BUSINESS 3
Introduction
The last two decade of the 20th century witnesses a dramatic global increase in the practices of
trading (Shah, Rao and Shankar, 2007). In India, the wave of liberalisation and globalisations
sweeping across the world has opened many national markets for multinational business.
Many big corporations play a major role in world trade and investments because of their
demonstrated technical skills, management knowledge, financial resources and various
related aspects. Recent developments in India are indicative of the rapidly growing
international business in the developing country. The economy in India is emerging
tremendously with inclusion of international investments, trade and financial transactions
along with the integration and openness of international markets (Zeschky, Widenmayer and
Gassmann, 2011).
India economy is the fastest growing economy in all over the world but it is framed by
various challenges and hurdles such as corruption, poverty and different cultures and beliefs.
It is the world seventh largest country as per the area and also has second largest standing
army.
Political, Socio-cultural, Economical and
Technology advantages
There are various factors, which affects the foreign direct investment in India. From past 10
years, the investment consequence is being continuously changing in India due to several
agreements and contracts in relation with privatisation, globalisation and liberalisation (Raja,
2016). India has substantial amounts of resources and ready to be employed in any sector so
as to contribute in the outflow and inflow of capital formation in their respective domain.
Moreover, the political environment is impacting these outflows and inflows and on various
areas such like telecommunication, insurance, banking and many more.
With the introduction of numerous reforms in 1991, there are many advantages come up for
India due to the FDI and political scenarios of the economy. This economic reform lead to the
initiation of several crucial policies related to import and export, licensing, franchising, etc.
This also brings rise in the technological sector as with FDI, many foreign firms get
autocratic rights and foreign equity. For instance, introduction of 51% FDI in retail sector,