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International Business: Expanding Operations into India - Essay Example

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International Business: Expanding Operations into India

e, the retail industry in India also has some inbuilt favorable factors particularly in the political, social, legal and economic spheres, which may facilitate foreign invested retail firms’ like Wal-Mart’s entry. This paper will focus on India and its retail sector analyzing the opportunities, it presents for Wal-Mart.
Globalization is having major impacts on the economic sphere of many developing countries like India, working as a catalyst for the economic development. Globalization turned out to be a godsend opportunity to these countries. That is, these countries opened up their markets and invited the foreign companies with a slew of schemes and benefits. India has also become part of global plans of many organizations mainly due to globalization. That is, when globalization or liberation made its entry into in early 1990’s, it opened the door for foreign companies including retail firms (but with caps) to reach India, benefiting both the Indian people and the companies.
In any country all over the world, their respective governments with their set of laws will only have a strong hold on the processes involving the entry of foreign firms, and India’s government is no exception. When viewed from the perspective of foreign retail firms like Wal-Mart, this year’s resounding election victory of the Congress party and the re-election of liberalization initiator, Manmohan Singh as the Prime Minister augurs well. As mentioned above, it was Manmohan Singh who in 1991 as the Finance Minister opened up the Indian market in various sectors to the foreign firms and so his re-election that too without the support of Communists, who are anti-foreign investment party, is important political opportunity. “The strong showing of the Congress-led political alliance in national elections meant the Government, led by Prime Minister Manmohan Singh, no longer needed the support of communist parties for its survival.” (Wade 2009).
The other favorable action in the ...Show more

Summary

They has to keep on moving breaking ‘boundaries’ both geographically as well as economically, to actualize the opportunities and emerge successful. That is, with every firms wanting to expand their geographical reach and…
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International Business: Expanding Operations into India essay example
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