Principles of International Business Management - Essay Example

The ICT services sector is the fastest growing sector in the country, with software development, ITES, BPOs and call centres earning good deal of foreign exchange. Combined with low labor costs, highly skilled manpower and good investments in human capital India is fast exploiting the opportunities of the global economy. India has signed treaties with its neighbors and other countries in the Asian region and streamlined its trade with these countries with the help of Asia-Pacific Trade Agreement, ASEAN and SAARC.

But India’s main exporting arena remains the EU and America, as it gets good value for its products and services from these nations. India’s export figures for 2005-06 are US $ Million 103,090.54, while import figures are, US $ Million 149,165.73 (Govt. of India, 2007). The gap between import and export is not much compared to the situation prevailing in pre-liberalization era. During those days India’s exports used to be miniscule in comparison with its imports. But now the manufacturing industry has come to age, while clothing and items like pearls, stones have remained its forte for quite a while now.

India’s export to EU Countries stand at US$ Million 23,120.38 as per the Government of India figures (2007). Main components of this export include; Imports to India from the EU nations on the other hand stand at US$M 25,704.03, while from North America this figure is US$M 10,374.61. This shows the edge in favor India in merchandise trade. India has signed bilateral and multilateral agreements to promote economic development through a continuous process of trade expansion, in the form of ‘India-EU Strategic Partnership1, US -India Trade Policy Forum and India-United States Commercial Dialogue2 to further the cause of the trade and industry requirements.

The French economy is considered a developed economy as compared to