Drawbacks Of Going International Essay

There were certain competitive threats due to opening up the Indian economy. One brand, instead of many, will create a strong equity that will benefit all Tata companies to fight competitors entering Indian market.

Tata Communications is a global company with its roots in the emerging markets. Headquartered in Mumbai and Singapore, it has more than 8,000 employees across 38 countries. The $3.2 billion company is listed on the Bombay Stock Exchange and the National Stock Exchange of India and is the flagship telecoms arm of the $103.3 billion Tata Group.

Many companies today want to expand their business to the international business, which can bring cost down and profits up. Taking a business internationally means knowing the rules and regulations of the countries you are entering. There can be many issues with going global which include cultural barriers, diversity issues, multicultural issues, political issues, and economical issues. It is very important to know how important expansion is to the company and what implications will come from going global.

Every industry has a unique market structure and it is considered that the relationship between openness to foreign investment and market structure is complex. Caves, R E (1996) states that there are empirical evidences which show the positive relationship between the extent of foreign investment and the degree of market concentration. It could be said that foreign investment is being attracted by industries with high concentration and high profitability. The short-run effect of foreign entry is to increase the number of firms and reduce concentration. After the reforms of 1999 FDI was allowed and the bar was set at 26% which did not really attract FDI as most big MNCs look for more decision making power. On the contrary, the FDI limit in the insurance sector is higher not only in other BRIC nations but also in other Asian countries such as Japan, Korea, Indonesia and Malaysia, in comparison to India’s 26%, which was a further disincentive for foreign investors to invest in India. In spite of that, India has an immense and almost untapped potential market for insurers, and is a highly attractive investment destination for foreign investors. The rise of the educated middle class promises sustaining growth opportunities for the industry to start with. Further, the presence of IRDA as a competent regulatory body promotes the interest of the insurers. Beyond this lies the immense potential at the bottom

When thinking about internationalization, a lot of people instantly associate it with multinational companies. It cannot be said that they are wrong; however, internationalization is a far more complex phenomena as it does not only consist of companies setting their headquarters outside the borderlines of the countries of origin. If an entity simply decides to import or export commodities or services, their action can also be described as ‘going international’; producing effects both domestically and internationally. In recent years, the number of companies that chose to get involved in international business operations and transactions increased substantially to the point where becoming visible in

In order for Tata Group to implement acquisition and/or restructuring strategies, it would be helpful to know existing scope of the group operating company structure, especially, profitability and financing activities. The following table shows the detail information of Tata group company structure. Additionally, the financing and profitability of each operating company under Tata group in year 2007 (FY07).

India is considered the 120th freest economy in 2014 with an economic score of 55.7. The score is reflected on areas like trade freedom and fiscal freedom. India is below the regional and world average scores. Even though it is noted as the most un-free economy, India received the highest index scores in the 2014 Index. The government is strongly involved in state-owned enterprises and waste full subsidy programs that result in chronically high budget deficits. Foreign direct investment restrictions were lifted in 2012 in many sectors such as retail and aviation. However the overall regulatory environment remains burdened by administrative bureaucracy. Non-tariff barriers

Companies can decide to go global or to enter international markets for various reasons, and these different objectives at the time of entry that enable the business to produce different strategies and the performance goals, and even forms of market participation.

2) The Tata Group had a presence in a wide range of businesses since it’s early days. Later, Ratan Tata managed to streamline the Tata Group . What advantages and disadvantages did the group gain through streamlining of business? Do you think as of 2009 the Group is still present in to many businesses?

Economic With business practices all over the world , Tata Motors concentrates on global economies while focusing on individual markets within countries. In recent years Tata Motors has experienced high growth since 2004. They have created joint ventures with 5 countries across the

International investment and trade plays a big role in a nation’s economy and the global economy. More so in recent years, has the global economy experienced a massive increase of international movements of goods with the international trade growing much more rapidly than output (Zhang, 2008). The fact that globalization is bringing the world together in the consumption of products, knowledge, services and brand names shows that international investment and trade is a very important subject in which a nation needs to be wary of. This is where government intervention takes place in international investment and trade and it happens for a variety of reasons, one being to protect the interests of producers which as a result, happens

“International business is the study of business activities that cross national boarders… and the national governments that regulate them” (Behrman & Grosse, 1992, p. 93). As well as briefly defining international business the above quote highlights that it is severely impacted by policy makers. It is important to investigate the relationship between the government and firms which undertake business overseas, in order to understand how and why governments intervene in international business. In recent history, the host country’s government has intervened more frequently in the businesses of multi-national corporations. This is due to the fact that governments are becoming increasingly aware of the risk that foreign firms can pose when conducting business in their country (Doz & Prahalad, 1980). One economic reason for imposing restrictions on international trade is to protect infant industries. An infant industry is any “newly established type of activity for which the economy’s existing endowment of skills and human capital…” does not allow the industry to thrive immediately (Westphal, 1982, pp. 256). Once the industry is capable the government may decide they no longer need to impose restrictions on imports, and the country’s economy will strengthen as a result of this newly formed industry. Another important reason why governments intervene in international business is in order to protect local jobs. If a government is unable to effectively protect the jobs of its

Since its establishment, Tata has shown a strategy of incremental change. Arguably, that point was important because so the group might vary within the current market. In the nineteenth – century steel was seen as an unprofitable section. Even more than 50 independent steel producers went into bankruptcy in the USA (Business Monitor International Ltd, 2010: 54).

Studying abroad brings about various changes in an individual’s life. The way people do things, their cultures and their beliefs prove different especially for a stranger (Kelly & Moogan, 2012, p 24). In this context, we will refer to a lady who leaves an Arabic Country to go and study in the United Kingdom. To date, higher quality education is offered in few parts of the world and UK is one of the places therefore many people would like an opportunity to study here. One, thus, gets a quality education and many opportunities after finishing school. However, discrimination and intergroup conflicts are some of the challenges faced by Arabic students on arrival in the United Kingdom (Arambewela & Hall, 2009). Cultural diversity is most times not tolerated by the host country making it difficult for strangers to adapt to the new environment. Arabic lady has to make sure she attains the best regarding education and at the same time not compromise the traditional values she was taught earlier.

Tata Brand Equity scheme. This gave the group the advantage of opportunities and ward off competitive threats.