BUS 401 WK 4 SLP: Positive Aspects of Doing Business in India
For your final SLP, pretend that an American corporation hired you to write a report giving a recommendation on whether or not they should enter the country that you have been researching for your Modules 1-3 SLPs. You have already done a lot of research on many of the cultural, financial, legal, and political aspects of doing business in your country which you can use as part of your overall recommendation. However, you also need to consider other factors such as the potential size of the market that your country has to offer. No matter how strong a country’s legal or political system, if your country has very few consumers that it will not be a wise decision to enter your country.
One resource to use for your report is Michigan State University’s Market Potential Index (http://globaledge(dot)msu(dot)edu/mpi/2014). This index focuses mostly on various aspects of the size or growth of the consumer market in each country which should provide some valuable information to use in making your recommendation. But don’t rely just on this index. Do some additional research on factors that you think make your country an attractive or unattractive market for an American company and use some of Venkateswaran’s (2012) guidelines on country evaluation as part of your paper.
When you have finished your research, write a two to three page paper with the following information:
- What are the positive aspects of your country that would make it an attractive market for an American corporation? Consider all of the main factors that you researched regarding your country for Modules 1-3 plus additional research for Module 4 on market potential.
- What are the negative aspects of your country that would make it an attractive market for an American corporation? Consider all of the main factors that you researched regarding your country for Modules 1-3 plus additional research for Module 4 on market potential.
- Overall what is your recommendation for the American company that hired you to write this report? Do the positives outweigh the negatives? Or vice versa? Explain your reasoning.
BUS 401 WK 4 SLP ASSIGNMENT
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Positive Aspects of Doing Business in India
One of the positive aspects in India that would make it an attractive market for an American corporation is its GDP. In 2015, India's gross domestic product growth was at 7.26 percent (Ministry of Finance, 2015). Therefore, India is considered to be among the fastest growing economies in the world. The country has emerged as a key destination for foreign investment. The Indian market has immense potential and offers a lot to entrepreneurship opportunities since the economy was liberalized in 1990 (Gridlines, 2012). The adoption of the liberalization policy has made the country become self-sufficient and diversify its industrial base. Since the liberalization process, India economy has accelerated with more sectors opening up for foreign direct investment (Gridlines, 2012).
India has a population of more than 1.21 billion making it the second most populous country with the biggest market (Pravakar , 2014). The middle class is expected to continue growing from the current level. This is one segment with rising disposable incomes and have shown greater acceptance of western culture, lifestyles and even products. This strong demographic advantage makes India an ideal country for investment. India acts as a hub to the rest of Southern Asia countries based on its geographical position. It connects to other important markets like Middle East, Africa and even Australia (Pravakar , 2014).
India's infrastructure is extensive and well known. The country has a vast railway, roads, ports, airport, and telecommunication networks that make it ideal for transportation of goods. The government already committed $ 1 trillion towards improving its infrastructure through its five-year plan (Pravakar, 2014). Areas of priority include ports, rail corridors in Mumbai and energy infrastructure. The government expects to build 80 additional airports and also have an ambitious goal of expanding its energy sector using wind, solar and nuclear energy (Pravakar, 2014).
Negative Aspects in India That Would Make It an Attractive Market for an American Corporation
Indian market seems to be lucrative with several business opportunities existing for American corporations; however, foreign businesses face chal...