Individual Reflective Report

INDIVIDUAL REFLECTIVE REPORT - INTERNATIONAL BUSINESS ECONOMICS Student’s Name Course Professor’s Name University City (State) Date Table of Contents TOC \o "1-3" \h \z \u Introduction PAGEREF _Toc165563451 \h 3Understanding and Analysis of the Economic Challenge - Protectionism PAGEREF _Toc165563452 \h 4Shift towards Protectionism in India PAGEREF _Toc165563453 \h 5Evaluation of Protectionist Measures PAGEREF _Toc165563454 \h 6Application of Theoretical Concepts and Economic Challenges in India PAGEREF _Toc165563455 \h 7Strategies for Promoting Free Trade and Cooperation (350 words) PAGEREF _Toc165563456 \h 10Strategic Tariff Reduction PAGEREF _Toc165563457 \h 11Enhancement of Trade Facilitation Measures PAGEREF _Toc165563458 \h 11Engaging in Multilateral Trade Negotiations PAGEREF _Toc165563459 \h 11Developing Special Economic Zones (SEZs) PAGEREF _Toc165563460 \h 11Fostering Public-Private Partnerships (PPPs) PAGEREF _Toc165563461 \h 12Reflection on Learning Objectives and Personal Learning PAGEREF _Toc165563462 \h 12Evaluation of Research and Information Gathering PAGEREF _Toc165563463 \h 13Critical Thinking and Problem Solving PAGEREF _Toc165563464 \h 14Conclusion PAGEREF _Toc165563465 \h 15Reference List PAGEREF _Toc165563466 \h 17 “Individual Reflective Report - International Business Economics” Introduction Over the past few years, India has adopted the idea of protectionism. Contraindicating with their old global integration and liberalisation policies, they have put more duty and trade barriers. The shift is notable considering the economic reforms made in 1991. The recent administration has begun implementing protectionist measures like more considerable tariff charges on trading materials, rigorous import standards, and endeavours like “Make in India” and “Atmananirbhar Bharat” to boost domestic industries (Caleb and Kumar, 2024). Apart from strengthening the domestic economy, these measures provide a broader scope for global trade dynamics. The role of India on an international stage can be changed by taking such measures. It is essential to study the alterations so that the economic path can be better understood and capture the essence of the impact on international relations and global trade. The rise in protectionism in India is being recorded at the same time as other countries like Europe and the US. The global adoption of protectionism has brought concerns over supply chains, disturbance in existent trade networks, and international financial partnerships that frame stability and growth (Ikejiaku and Dayao, 2021). As trade policies become stringent, economic growth can become sluggish due to restricted marketing reach, lower international investments, and reduced competition. Correspondingly, the report analyses India’s newly incorporated protectionist policies. It examines the impact of these policies on economic relations and international trade and their role in maintaining domestic financial growth. Furthermore, it assesses how theoretical points from international economics are applied to make these policies more relevant. By taking the comprehensive approach, a better understanding is gained to capture the full extent of economic challenges brought by protectionism. Breaking down these policies using international economic concepts will show how global economic interactions are affected. Understanding and Analysis of the Economic Challenge - Protectionism Protectionism includes government policies that limit imports from other countries by utilising several methods, such as quota systems, duty charges, and subsidies. These practices shield local industries from international competition, save employment opportunities, and boost economic growth. Tariffs increase the price of imported stuff, making them less popular than local products. On the other hand, subsidies give financial assistance to domestic industries and empower them to supply products at lower costs (Fu, 2021). As per the World Bank report by Kutlina-Dimitrova and Lakatos (2017), these tools shape the trade dynamics with significant measures, and import tariffs are the most emerging tool. It is further used to safeguard the interests of domestic industries, as they are emerging globally, as indicated in the table below. Table 1: Measures for Rising Protectionism (Kutlina-Dimitrova and Lakatos, 2017) Shift towards Protectionism in India The trade policies of India have taken a complex route since gaining independence; it transitioned from a closed economy to liberalisation and recently returned to protectionist practices. After 1947, a protectionist method was adopted that emphasised import substitution industrialisation and self-sufficiency—this period involved stringent regulations and a hold over the economy that lasted until the 1980s. In 1991, economic liberalisation incorporated a vital change as India adopted international investment and lowered the margin of trade barriers (Mousavi and Asadi, 2021). During this period, it helped provide solid economic growth and incorporation into the global market. India has taken steps to protect the domestic industries by incorporating protectionist measures. For example, they imposed tariffs on electrical materials and restricted agricultural exports. These measures aim to safeguard local businesses and promote domestic manufacturing houses. The tariff implementation has made the imported electronic gadgets more expensive for the local people, encouraging them to buy and support the local products. Export restrictions on agricultural goods such as rice and wheat are also needed to stabilise the ongoing food inflation (Singh, 2023). These implementations showcase India’s aim to support their local industries and maintain economic growth. Besides, the increase in protectionism in India can be considered a mixture of economic, social, and political factors. In politics, there is an increase in patriotic fervor and a strong emphasis on self-reliance, showcased by the initiative “Make in India.” These projects help boost India’s manufacturing capabilities and promote the creation of a global manufacturing hub. Economically, trade deficit concerns and the role of globalisation on domestic industries have led to the reimposition of duty charges and trade barriers. The aim is to protect the new and emerging sectors and preserve employment opportunities (Barnes, 2022). Regarding social concerns, there is an increased thought over protecting economic independence and reducing dependence on foreign entities in industries that require strategies such as telecommunications and defense. All factors and the ongoing global trends toward incorporating protectionism have influenced India’s approach to creating self-reliant economic policies. Evaluation of Protectionist Measures The shift towards protectionism in India has brought problems and opened gates to new opportunities. It is a unique situation that should be dealt with, considering its long-lasting effects on the country’s economy and trade relations with foreign governments. For example, implementing a tariff on imported electronic gadgets can encourage local manufacturing, but at the same time, it can raise the prices for the consumer. It could also limit access to advanced technologies and slow the country’s technological growth. Another example is the government’s 20% duty charges on imported televisions to boost local product consumption (Barnes, 2022). The following move did increase local production and raise retail prices, which, in turn, also affected consumer affordability. It is essential to weigh the benefits and challenges of protectionism to ensure a balanced approach that helps stabilise the country’s economy while also considering the impact on consumers. The effect of protectionist policies on local industries has been complicated. On one side, some industries, such as electronics, have documented some economic growth due to lower foreign competition; on the other hand, those industries that import raw materials for production have faced inflation in manufacturing prices. It can be demonstrated by the example of auto manufacturing industries that import components from foreign markets. They faced delays in the production process and had to deal with raised prices that hurt their local and international competitiveness (Sen et al., 2020). Additionally, the restrictions on exporting agricultural goods have led to mixed results. On the one hand, they solve the problem of food inflation, but on the other hand, they cut down farmers’ earnings. These farmers could have enjoyed the benefits of exporting their goods at higher amounts in the international market. “Infant Industry” is an economic theory that supports the argument of protectionism by saying that new sectors need protection from competition in global markets. In contrast, they also suggest that industries do not eventually become present for the international market forces, and a long period of protection can result in reduced competitiveness and increased inadequacy. However, a rising concern about protectionism is that industries might need proper exposure to international markets and technology trends (Cheng et al., 2021). Hence, it is essential to balance promoting and protecting local industries while accounting for integration in the global economy. Considering India’s example, it is clear that the country enjoyed perks of gain for a short time in protecting local industries; however, it also raised the threat of not matching the global market level. Application of Theoretical Concepts and Economic Challenges in India Considering international trade, mercantilism, protection, and competitive advantage theories provide a substructure to examine the outcomes and driving forces behind protectionism policies. These theories help see the perks and setbacks of economic tactics and illuminate the complexities of global trade. In the 16th century, mercantilism was introduced, suggesting that a nation’s prosperity is gained from focusing more on exports than imports. The theory looks at trade as a zero-sum game, suggesting that when one country gains, the country loses (Gansane, 2023). For this reason, some countries, like India, have taken protectionist measures to increase their domestic production and grow their economy. It is done so by putting tariffs on imported goods such as agric...