International Trade & FDI in India

3285 Words Feb 20th, 2014 14 Pages
INTRODUCTION

Indian market is one of the largest market with high purchasing power. Lot s of work to be done in the field of logistics & supply chain management. It is not possible for Indian government alone to developed world class infrastructure and other allied facilities because of huge investment requirement . FDI in India has in a lot of ways enabled India to achieve a certain degree of financial stability, growth and development. In order to create new & more jobs , FDI is the success mantra now. FDI no doubt is creating innovation in retail sector but simultaneously it may pull down the local and domestic retailers of India which is surely a concern to worry about for Indian government. It reduces the gap between farm prices
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New labour-intensive Final Product Exports: There are many opportunities for host countries to become significant exporters of new labour-intensive final products, such as textiles and other consumer goods. Firms in developing countries seeking to expand their exports to world markets, however, face immense difficulties in setting up a distribution network, changes in consumer tastes, and building up a new product image. In many cases, the design, packaging, distribution, and servicing of the products are as important as being able to produce them at, or below, ruling prices in world markets. The lack of such skills constitutes a key barrier to entry into the world markets for developing country’s exporters.
Labour-intensive Processes and Component Specialization within Vertically Integrated International Industries: Exports of labour-intensive goods within vertically integrated production obviously depend on the participation of TNCs. Generally, these exports are thought of as intra-firm trade, but a great part of them are arm 's-length transactions between TNCs and indigenous
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