ITB Assignment 2

ITB Assignment 2

Strategic Risks and Strategies to Cope

India's foreign-exchange markets have become more unpredictable as the nation's international business has improved, and the rupee is exchanged easily on the present consideration (although not on the investment account). Sharp swings in the value of the local currency relative to the US dollar have become more frequent following the rise in foreign inflows. Furthermore, the Reserve Bank of India (RBI, the central bank) appears to have largely ceased intervening in the foreign exchange market. But occasional interventions still occur; policymakers remain extremely concerned about rapid price rises, and the inflationary risk posed by sudden depreciations outweigh the advantages of a possible boost (from a weaker currency) to the competitiveness of India's exports.

Wal-Mart has plenty of upsides in thinking of entering India. India has one of the fastest growing economies in the world and also the second biggest population in the world behind China. However, Wal-Mart will only be operating within the metropolitans of India. Nonetheless, the economic, foreign exchange and political risks for Wal-Mart to enter India are quite controllable and are moderate if not low. Hence, it would be a big boost for Wal-Mart If they can enter into India (Varadarajan, Darby & Teeling, 2012).

In the past couple of decades we have seen tremendous increase in the globalization trend and by following the same trend as it had opted before when it comes to other countries in the world Wal-Mart now looks to enter India. There is huge potential for Wal-Mart to capture the biggest economy after China if they succeed in entering India. Moreover, Wal-Mart would also benefit from the close proximity of China to India, since majority of the products of Wal-Mart are made in China and would allow for smooth functioning of the Wal-Mart operations (Wal-Mart Goes India. 2006).

Wal-Mart has plenty of upsides in thinking of entering India. India has one of the fastest growing economies in the world and also the second biggest population in the world behind China. However, Wal-Mart will only be operating within the metropolitans of India. Nonetheless, the economic, foreign exchange and political risks for Wal-Mart to enter India are quite controllable and are moderate if not low. Hence, it would be a big boost for Wal-Mart If they can enter into India (Varadarajan, Darby & Teeling, 2012).

International Banking System

Internet has opened new opportunities in the field of banking. The internet penetration leads towards the development of new fields and business opportunities within the banking sector. Products and services of banking are now being offered through the platform of internet commonly known as e-banking. This new concept of banking is impacting the revenues of the banking sector in an extra ordinary manner. The banking sector is considered to be the most competitive sector in modern world. Banks are opting for newest technologies available in order to remain competitive in the sector. Internet is also considered important because of its efficiency to reduce costs and enhance internal and external communications which is ...