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 Now I have the second part of the project I NEED FROM YOU 

just do it based on the requirements that I sent. 

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Attachment 1;

INTERNATIONAL BUSINESS IN INDIA  

By: ABC

Dated:

Table of Contents

INTERNATIONAL BUSINESS IN INDIA 3

Introduction 3

Political Environment 3

Legal Environment of Business in India 5

Economic Environment for International Business 6

Monetary environment 8

Trade Environment 9

Culture Analysis 9

Challenges and Opportunities for new business 10

Guideline for New Business 10

REFERENCES 11

INTERNATIONAL BUSINESS IN INDIA 

Introduction  

In the era of the advanced and developed business environment, every country focus to be leading location for the business venture. With time, India is becoming lucrative in the field of international business. There might be more progress in the business if the relation with neighbor countries are stabilized. The stock market of India is a mind-blowing stage which attracts the world to invest in India. One more thing which attracts the investor to involve in the international business is the traits available in the different area of the country. The western part of India is known as capital of country. In this paper of study, we will discuss in detail the factors which will influence the business startup in India.  

Political Environment

The political environment of India tends to instable due to the mix population of religious differences. The politics of India follow the constitution made by the parliament according to democratic country. It designed as a president and prime minister and then further division of authorities. The structure of the political plan also contains bicameral legislature, upper house the Rajya Sabha and a lower house Lok Sabha. The Rajya Sabha represents the government, and Lok Sabha represents the general public of the states. The judiciary is independent and headed by the Supreme Court. In some past decades, the politics of India become a dynastic economy. The economist marked India as flawed democracy, which gone worse under the provision of BJP government (M. P. Kacker, 1972).  

As the discussion about the parties, India has large number of the parties almost 200 parties which are fighting to command the states. Some parties are generally connected to their leaders and actively taking part in the leadership of the country. There are two types of parties in India, one is National Party, and the other is Regional party. Every party has symbols and ultimate target with the vision to develop the country. A party must possess a legislative motto to follow; a party must be present in the Lok Sabha which shows that how many people are with that party as the country is democratic state. At a time, party may lose its identification which would not mean that it will lose its symbol (S. C Jain, 2006).

After the year of 1984, when the law was anti-defection law passed, there was a tendency among the politicians to rule with a party such as a congress or BJP.

As concerned with the startup of international business in India, an investor need to take a glance on the political risk in India. The following risks should take into consideration while analyzing the political situation as matter of foreign investment;

• The government decisions go slow down due to stability in the political environment.

• Culture problems may lead to the delay or conflicts in the business partner and supplier of the material.

• Unpredictable demands of labor and industrial action.

• Inefficient bureaucrats and corruption by the fake leaders.

• Unexpected delays in the judiciary decisions.

Political risk refers to the study of the sources which are more likely to impact on the specification of the business as you are going to establish your business in these circumstances. The objective of the political risk analysis is to recognize the risk before making investment or commitment to do business in the economy. The risk analysis set an ultimate target by the senior companies to follow by the new companies with political and economic effects. The business founders must research about the large consumer products and multi-client pharmaceutical groups to work on with them.

Legal Environment of Business in India

The legal policy of business in India is the basics of the legal environment for business; it deals with the frameworks, laws, and regulations in which a business has to perform his activities. The basic purpose of a company is most likely to sell the product or services which consumers want to purchase. To operate business in any country the company or business has to follow particular laws which are set up by the government of the country. A transaction must be according to the terms and condition of the government in the interest of both seller and buyer. As establishing business in India, there should be basic knowledge of the laws governing in the states; 

1. Indian Contract Act, 1872

2. Sale of Goods Act,1930

3. Indian Partnership Act, 1932

4. Negotiable Instruments Act, 1881

5. Arbitration Act, 1940

The state is also possessed environmental laws which are necessary to save the environment from exploiting by using the resources which could be lost. These laws are also a risk in flourishing the industry as it is harmful to the environment (Chakrabarti, Megginson, & Yadav, 2008). Business and companies are formed under the supervision of corporate rules and regulations. These rules help make the smooth working of the business in a country. These laws are;

1. Industrial (Development and Regulation) Act, 1951

2. Companies Act, 2013

3. Monopolies and Restrictive Trade Practices (MRTP) Act, 1969

4. Competition Act, 2002

5. Consumer Protection Act, 1986

There are different acts which help to operate the business in the economic development and foreign investment which are helpful to establish the business in India.

India is making progress in the international investment as they want to fill the gaps with China and create an investment hub which exceeds the financial production of the country. India is second most populated country on the earth.it rises the purchasing power of the exchange rate and foreign investment. India has democratic environment and welcomes the foreign investment in the country like IBM and Coca-Cola’s investment in India. India’s investment was very low to decide the open economy. In advance economy the objectives of facilitating the foreign investment in the country. The most companies are owned by the automatic route; foreign direct investment is restrained in the retail trading and lottery. The power which is used by the labor is had been reduced with the effect of legislation.

Economic Environment for International Business

India is an emerging location for the international business as US is making progress in building strong relationship with India which is beneficial for both countries. India has large part of its investment in US which is almost $7.8 billion during the year 2014. The government of India is taking new steps to increase the foreign investment in private sector which will improve the economic growth and economic development which leads to a country towards the development and prosperity. In perspective of economic development in the business, India is ranked at top 3 among the world. The government of India assists the manufacturing industry as they want to enhance the employment level in the country. The government provides jobs in automobile and other industry. The most emerging industry for investment in Information Technology as the IT industry in India is leading industry. Keeping in mind the economic environment of India, the automobile industry, food processing, and textile garments industry are major part to invest in India. The 5 countries are most likely to invest in India such as UAE, Germany, United Kingdom, Japan, and America. The question is that why India to invest? As the GDP growth rate is increasing rapidly like China and it may be beaten China in coming years. 

The government policies help make value of rupee, to managing inflation rate with the lower rate of interest. In 2014, Prime Minister Modi, start a campaign to attract the manufacturing sector to develop the brand. The government also push up the investors by friendly techniques which enhance the FDI from 26% to 49%. Moreover, the contribution of the private sector will be more efficient to improve the foreign investment so that country will grow by all factors. Within all these positive points, there is also some risk linked to these advantages. The stock market of India is traditional and oldest among the other markets. The investor in India may face the risk of inflation level suddenly increased by the government as they have lack of fiscal and monetary policies. The incentives to retirees and facilities to the poor may decrease the rate of return on investment. Foreign investment requires to watch exchange rate risks and interest rate risks with great care in India (Luo & Tung, 2007).

Several risks are certain to the company, the location, and the state of the competition. It’s best to watch divided cultural savvy guidance to recognize, manage and mitigate the risks of investing in India.

Monetary environment

The monetary policy is a framework to measure the flow of money in the country. 

India has consistently maintained a democratic type of governance, before the 1990s its

The economic framework was most likely to same to that of a command and control economy. During last two decades, the Indian economy has developed itself towards market forces, with a

A healthy rate of GDP growth and a normal rate of inflation. This diversification had been gradual

and except for the balance of payments crisis, has come with minor issues. Given that period is featured by frequent financial crises in large parts of the world, the Indian experience and the role played by the monetary framework in it can be valuable information in avoiding financial crises, and also in establishing economic reforms in the economy.

As concerned with the currency system in the banking and economic sector, Reserve bank of India is solely responsible for moderating the currency flow in the country. The reserve bank of India run the policy of money according to the rules of Act Reserve Bank of India 1934. In India, the printing of currency notes is at Nasik and Dewas in MP. It also has four mints for coin production and some selected branches to distribute the money in the country — this system based on Rs.50, 200, 500 and 2000 currency notes (Joshi, 2001).

In the war of currency, compete by one country through a competitive market of its currency against other countries, it is one of the worst and feared results in international economics. Whether the nature of system is acute, other currency crises are connected with inflation, crisis, financial panic, and other negative results. Nothing positive ever comes from a currency war."

Depreciating the currency for long term development is adopted by the countries such as currently China has depreciated their money to make the economy more attractive.

Trade Environment

The poor people prefer to take basic need and survive in society by just getting food, shelter, and fuel, which cannot overcome the issues faced by the economy. There is strong relationship between poverty and to control population growth. To develop the country it is compulsory to develop trade in the economy. In concerned with trade in India, the exports have increased by 8.73% during the financial year 2017-18, and imports are increased by 9.72%. India is keen interested in increasing the exports to make sure the employment in the country. For this purpose, ministry of finance enhanced the merchandising export in the country which is mostly based on garments industry. India is increasing contribution to economic development in the global market. 

Culture Analysis

The culture represents the different people in society and shows the effects of how people contribute to the development of economy. The culture of India is eastern and based on Hinduism. People are most likely to be religion with their belief. The people differ from to place to place according to their language and food. With concern of people’s need and requirements they prefer to arrange marriages and family ritual in their traditions. They prefer to celebrate their events with more care. They invest in the things which are necessary to use in their events. The main cause of India’s prolongs economic glimmer in the society is to flourish the economic development with social norms, beliefs, and religion in the country (Christie, Kwon, Stoeberl, & Baumhart, 2003).  

Challenges and Opportunities for new business

Since a few years, the industry in India is pushing up with different global investors. The government of India is collaborating with the investors to increase the investment in country. Although government is helping the investors they also have to face some challenges like government policies amendment, talent of the young’s and funding system of the government and private sector. As relevant to the opportunities, there are also some opportunities which could be beneficial for the investors, innovation system in the industry, connectivity, and de-globalizations. All these challenges and opportunities may set the mind of investor to invest in the future project.  

Guideline for New Business

A new investor should analyze all the situation existing in the country according to the requirements and returns of the business which he has selected, then take a startup if he found it suitable (Shenkar, Luo, & Chi, 2014). 

REFERENCES 

Chakrabarti, R., Megginson, W., & Yadav, P. K. (2008). Corporate governance in India. Journal of Applied Corporate Finance,, 20(1), 59-72. 

Christie, P. M., Kwon, I. W., Stoeberl, P. A., & Baumhart, R. (2003). A cross-cultural comparison of ethical attitudes of business managers: India Korea and the United States. Journal of Business Ethics,, 46(3), 263-287.

Joshi, P. L. (2001). The international diffusion of new management accounting practices: the case of India. Journal of International Accounting, Auditing and Taxation, 10(1), 85-109.

Luo, Y., & Tung, R. L. (2007). International expansion of emerging market enterprises: A springboard perspective.

M. P. Kacker. (1972). Patterns of marketing adaptation in international business: a study of American business firms operating in India. . Management International Review, 111-118.

S. C Jain. (2006). Edward Elgar Publishing. Edward Elgar Publishing.

Shenkar, O., Luo, Y., & Chi, T. (2014). International business. Routledge.