International Business in India



International Business in IndiaIntroduction

The paper is based on describing the international business through the example where the computers have to be sold in India. This study will be conducting the international business with the help of five screening process that have been taught in the course. The five screening process include the initial screening which comprise of analysis of basic needs potential, foreign trade, imports that do not measure market potential. The second screening process includes the analysis of the market indicators, market forces, and trend analysis or cluster analysis. The third screening process may include the analysis of the political and legal forces, assessment of entry barriers, profit remittance barriers, and political stability. The forth screening process involves the analysis of the socio- cultural forces. The last and the fifth screening process include the analysis of the competitive forces.

Discussion

Initial Screening Process

This is the very first screening step where the needs have been analyzed. This step is crucial because if there is no potential need for the product in the market then selling that particular product within that the market will be a big failure. However, if India is considered, it comes amongst the one of the developing and poorest countries in the world. Hence, there can a good lucrative market for the business of computers as its literacy rate increase by ten percent in every ten years (Daniel, 2000). Moreover, the world's number two computer manufacturer, Dell also believes that there is big and growing opportunity of doing business in India. There is a tremendous opportunity for growth of the computers in India as there is a big penetration capacity in the country (Hindustan Times, 2011). The research on the foreign trade potential of India is found to be around 7.19 % for the computers. This shows that there is a good potential of foreign trade in the country due to its growing market and increasing literacy rate (Foreign Trade Performance of India, 2011).Second Screening Process

The second step of screening is the analysis of the financial and economic forces of the country. This may include the analysis of trends in inflation, currency rate, and interest rate. The GDP growth of India for the last year was 6.9 % which has been estimated in value as US $ 1,455. Moreover, the inflation rate has found to 8.2 % last year, and 8.6 % in 2011, ...