India's Economic Reforms and Growth
Added on 2020-04-21
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Running head: INTERNATIONAL BUSINESS International BusinessName of the studentName of the UniversityAuthor Note
1INTERNATIONAL BUSINESSTable of ContentsIntroduction......................................................................................................................................2Research of the country for doing business abroad.........................................................................2Legal Environment......................................................................................................................2Legal issues in International Business.........................................................................................3Legal Risks..................................................................................................................................4Reform measures by the Government.........................................................................................6Conclusion.......................................................................................................................................7Reference.........................................................................................................................................8
2INTERNATIONAL BUSINESSIntroduction The business report is discussing about the suitability of a country around the globe inrespect of international expansion. In this regard, the country that has been taken intoconsideration is India. For researching the country to conduct business abroad, the differentattributes that are taken into consideration are the legal environment, legal issues relating tointernational business, legal risks as well as reform measures by the Government. Research of the country for doing business abroadLegal Environment Legal System – The legal system present in India is bearing an infrastructure that isinfluenced by the colonial rule of the British. The Constitution is depending upon theGovernment of India Act 1935, which was passed by the British Parliament (Sinkovics2014). Courts – There is the existence of a unified judiciary, even though the country is havinga quasi-federal structural aspect. India also follows the system of common law and thereis separation of power between the judiciary, executive and the legislature. The decisionswhich are taken by the Supreme Court are binding the High courts and the othersubordinates court in the country.Investment and Trade – The new industrial policy of India is generally associated witha de-licensing industry and doing the introduction of reforms that are concerned withfiscal as well as regulatory aspects. This is providing a vast encouragement in respect offoreign investment (Penrose, 2013).
3INTERNATIONAL BUSINESSContract - A contract can be regarded as a binding agreement between the two parties torefrain from doing something. There are domestic contracts for the sale of goods andservices and agreement between the two parties which accepts the offer. The contract lawvaries from country to country. Contracts are complex and some contracts risks may bedue to loss of intellectual property, revenue leakage and cost overturns and loss ofbargaining power. The parties who are in contract must have the legal capacity to enterinto general contract. There must also be genuine intent to enter into different agreementsfrom the parties. Government Policy - There can occur the classification of the policies of thegovernment in respect of FDI, which can be classified under three segments. Firstly,sectors where it is prohibited. Secondly, sectors where it is being subjected to a cap suchas regarding telecommunications where FDI upto 49% has been permitted. Thirdly, thereexists the residuary segment in which there isn’t the requirement for having anypermission from the Government’s end (Sinkovics, 2014). Foreign investment Promotion Board (FIPB) – Foreign Investment Promotion Board(FIPB) is the proficient body for taking into consideration as well as makingrecommendation regarding foreign direct investment (FDI) that is not falling under theroute that is considered being automatic in nature (Penrose, 2013). India also do not havefull provision of capital account convertibility. The non-residents who are investing aconsiderable sum of money to comply with the foreign exchange regulation in thecountry are governing foreign direct investment. Foreign Portfolio Investments – There might occur the investment of only ForeignInstitutional Investors having registration with the Securities & Exchange Board of India
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