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Globalization in Indian business

1. Government policy and procedure Government policies and procedure in India are among the most complex

confusing and comprising and cumbersome in the world even after the match

publicized liberalization is swift and efficient action.goverment policy and the

bureaucratic culture in India in this respect are not that encouraging.

2. High cost High cost of many vital input and other factors like raw material and

intermediates power finance infrastructural facelifts like port etc,tend to reduce

the international competitiveness of the Indian business.

3. Poor infrastructure Infrastructure in India is generally inadequate and inefficient therefore very

costly.

4. Obsolesce The technology employed mode and style of operations etc.are in general

obsolete and these seriously affect the competitiveness.

5. Resistance to change There are several socio-political factors which resist and this comes the way in

the watt of modeminisation and efficiently. Improvement.tehnological

modification in resisted due to fear unemployment. the extent of excess

employed by the Indian industry is alarming because of this labor productivity is

very low and this in some cases more then offsets advantage of cheap labor.

6. Poor quality image. Due to various region the quality of many Indian product is poor even when the

quality is good the poor quality has becomes a handicap.

7. Supply problem Due to various region like low production capacity shortage of row material and

infrastructure like power and port facilities.indian companies in many instance

are not able to accept large order to keep up delivery schedule.

8. Small size

Because of small size and the low of level of resource in many cases Indian firmsare not able to complete with the giants of other countries. Even the large of

Indian companies are small compared to the multinational giants.

9. Lack of experience. The genral lack of experience in managing international business I another

important problem.

10.Limited R@D and marketing recherch

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Marketing recherch and R & D in other areas are vital inputs for developmentof international business. However these are poor in Indian business.

11.Growing compaction The compaction is growing not only from the development countries but also

forms the developing contries firms indeed the growing competition from thedeveloping countries firms is serious challenge to india international business.

12.Trade barriers Although the tariff barriers to trade to have been progressively reduced thanks

to the GSTTMTO the non tariff barriers have been incasing.particulry in the

developed countries further the trading blocs like the NAFTA EC etc. could also

adversely affects Indians business.

Factors favoring globalization

Human resource.

A part from the low cost of labor.there are several other aspects of humanresorce to Indian fover Indian has one of the largest pool of scientific and

technical manpower. The number of management graduates is also sugaring it is

wildly recognized given the right environment Indian scientist and technical

personel can do excellently

1) Wide base Indian has very broad resource and industrial base which can support a verity of

business.

2) Growing entrepreneurship Many of the establish industries are planning to go intentional in a big way

added to this is the considerable growth of new and dynamic entrepreneur who

could make a significant contribution to the globalization in Indian business.

3) Growing domestic market The growing domestic market enables the Indian companies to consolidate their

position and gain more strength to make foray into the foreign market or to

expected their foreign business.4) Niche market

There are man market opportunities abroad in the to the present in the form ofmarket niche. such niche market is particularly attractive from small companies

5) Expending market.

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The growing population and disposable income and the resultant expendinginternal marketing provide enormous business opportunities

6) Economic liberalization The economic liberalization in Indian is an encouraging factor of globalization

the delivering of industries removal of restrictions on on growth opening up ofindustries earlier received for the public sectors .

7) Competition The growing competition both from whtin the contries and abraded .provokes

many Indian companies to look to foreign market seriously to improve their

competitive position and to increase the business. Sometimes compnies enter

foreign market as to counter competitive strategy to the foreign companies it

own home market to weaken its competitive strength.