The Importance Of Doing Business In India

This report is based on the comparison between two organizations that deals with the Retail Company that operates hypermarkets. The report consists of a comparison between Canadian business and Indian business. For this project I have chosen Canada’s Walmart and India’s D’mart the Canadian Walmart is the multinational retail corporation.And Indian D’mart deals within India only.

In order to create successful business, we need to evaluate on which market that is suitable for our business. In this paper, we are going to discuss about the advantages and disadvantages of doing business in emerging markets and developed countries, From there, we can decide whether to expand our business in more promising markets.

In a time of global commerce, new business ventures can take on many forms. What used to be local or even national companies have become world-wide. International growth of a business can be extremely beneficial but is not without its challenges. Different countries have different peoples and different cultures - different ways of doing business altogether. If a venture is to be successful, these differences must be well understood.

Rolls Royce, established in 1906, is now a globally recognised company. Although originally they focused on car manufacture they are now one of the leaders in power and propulsion technology. Rolls Royce’s technology is very efficient and their manufactured products are used in many sectors such as aerospace, marine, energy and nuclear energy. Investment in research is key to their success; they are innovative, creating new and improved systems to help achieve a strengthened market position. The jet engine has been improved constantly since it was developed in the early 1930s and Rolls-Royce’s new Trent XWB EP civil aircraft engine offers a fuel consumption improvement of 1% compared with other manufactures, making it the most efficient technology currently in the world. Rolls-Royce are a state-of-the-art company who continue to innovate and produce new products and services that benefit society. The Rolls Royce brand is key, without it they would not be able to make the sales and revenue they make. Its brand provides a symbol of quality and a good reputation. This reputation helps build customer relations and trust for the company. The brand also creates a strong attraction to engineers, which they offer many apprenticeships to enhance their skills base. There are currently over 50,000 employees working for Rolls Royce. It is one of the top

India is one country which is developing rapidly at the moment along with China (Lal and Clement, 2005). The political, economic, social, cultural, technological and legal climate in India is extremely suitable for international entrepreneurs since business prospects in a country are heavily dependent on the above mentioned parameters. Since India is the second most heavily populated country in the world, British telecommunication company, Vodafone has enormous business opportunities in India. Mobile phone usage in India is increasing rapidly in recent times (Press Information Bureau: Government of India, 2010). A substantial portion of Indian

Since the year 2000, according to a report written by the United Nations (2013), FDI going to BRICS countries (Brazil, Russia, India, China and South Africa) has tripled reaching an amount of $263 billions in 2012. This amount represents 20% of FDI in the world. Moreover, Hall (1976) states that there are certain countries that can be described as High-context cultures that are based in interpersonal relationships. Those are countries where factors like trust or legitimacy are crucial for business and BRICS are considered as high-context countries. Therefore, firms need to gain legitimacy in order to operate in those markets and Institutional provides an excellent theoretical framework for defining success in those markets.

Located in southwestern Asia, India created 28 state boundaries and became an independent nation in 1947 (Morrison and Conaway, 2012). The currency is the Indian Rupee (INR) which has a conversion rate of 64.152 to 1 U.S. Dollar (UNCTAstat, 2015). Approximately 80 percent of India’s population are Hindus, although, Islam is also a prominent religion in India (Morrison and Conaway, 2006). Hindi and English are recognized as the official languages of India. However, each state has the right to establish “schedule” languages such as Bodo, Kannada, Oriya and Tamil (Morrison and Conaway, 2012). The government of India is the largest democracy in the world and power is divided between national and

One of the countries that I consider are best to do business is in the United States. The USA ranks number 8 on the ease of doing business. Moreover, a business-friendly environment and openness to diversity provide an ideal place to invest and thrive. Additionally, the USA has the best technology, infrastructure, and transportation system. This country has a population of 323,127,513 people with a median household income of $53,889 (https://www.census.gov/quickfacts/fact/table/US/RHI825216). Household spending is the highest in the world. Practically, any investor can thrive in this country.

This report is intended to brief the reader on the effects of emerging economies on North America’s economy and the global market on a whole. This report provides an overview of the emerging economies of India & China; their education, ideological beliefs & economic performance and how North America’s way of business is affected. This report was compiled based on articles from reputable sources, such as Bloomberg and articles published within the industry. This report was authorized by Mr. Laviolette, an Accounting teacher at Jean Vanier Catholic High School.

All this is taking place against the backdrop of an inexorable longer term shift of power gravity from west to east, the growth of Brazil, Russia, India and China (the BRIC countries), which are in turn facing their own growth challenges, and the rise of new emerging economies. These macro-economic trends have a significant impact on the way in which businesses operate, the priorities they face, and the strategies they develop to be successful on a global platform.

Indians will often take longer than usual to get the U.S. company a contract, certificate, or document which can create a bottleneck (Hume, 2012). The bureaucrats holding up the progress expect a payoff for moving things along faster so having a local player or someone who knows how to weave in and out of bureaucracy in India may make business dealings easier. Hume (2012), suggests doing research beforehand to figure out who the right players are and be diligent. Other cultural nuisances when conducting business in India is their perspective on time. Indians don’t like to be ruled by a calendar or a clock so getting business done in a timely fashion is hard to accomplish. One of the frustrations with doing business in India is that the politicians have a great deal of power. If a person in office is in the process of being replaced and a company had business dealing with the previous person, business dealing will start over at square one with the new

According to latest MSCI Emerging Market Index, there are 24 emerging market in the world, including China, India, Brazil, Russia and South Africa – also called the BRICS countries. According to the World Bank, in 2013, the total GDP of BRICS countries was $15.8 trillion, putting the BRICS in the third place after EU ($17.3 trillion) and US ($16.8 trillion). Therefore, without going into the detail GDP of other developed and emerging economies, it can be inferred that the importance of emerging countries in the global economy has been increasing over time. In view of the increased significance of these economies, the current study is expected to provide some additional light in the area of the legitimacy of multinational companies in emerging economies.

In the last few decades, foreign investment has flooded into the BRIC (Brazil, Russia, India, and China) markets. These countries have greater market potential than most developed countries, primarily due to their higher growth rates and the sheer size of their populations. For this reason, these countries are often grouped together in business literature and research, but they are hardly homogenous. Companies intending to conduct business in these countries need to consider their market entry strategy carefully and distinctly for each country, without generalizing across all of the BRIC nations.

As the world’s 3rd largest economy, India is an important trade and economic partner for the United States(Martin, Akhtar , Kronstadt , Kumar ,Siskin,2014).There are many resources which are traded between India and United States. This trade may be due to differences between in labour productivity, factor abundance or other factors.example of products traded between India and US include precious stones and metals,aircraft and spacecraft parts,machinery,optical instrument and equipment,textiles,mineral fuel and oil and machinery(Singh,Verma,2016).This trade is due to a fact called comparative advantage which means if countries specialise in producing goods where they have a lower opportunity cost then there will be an increase in economic

Most people are aware and have an open eye on global markets as they are witnessing the passion that is surrounding emerging economies, including China's economic achievement and India's thriving technology sector. However in spite of the clear potential chances, numerous businesses still appear to