The Impact Of Globalization In India

2051 Words 9 Pages
Globalization has drastically changed the world of business throughout the years. Once independent from the business needs and demands of other nations, companies have had to adapt and overcome the repercussions of this ever-changing event in order to remain competitive and afloat in their industry. One way to ensure sustainability and growth is by establishing practices of international trade and manufacturing to be preformed outside of the United States making the organization a multinational corporation (Block & Hirt, 2014).
As an aspiring entrepreneur of a children’s clothing line, one of the top priorities would be to find a good quality material at a reasonable price. With labor costs in China rising and factories in Bangladesh not complying with request from *clients* India is emerging as a premier destination for textile products, rising 17.5% in the year 2013 compared to the previous year (Malhotra, 2015). According to India’s Foreign Trade Policy an export is defined as an act of taking out of India any goods by land, sea or air with the proper transaction of money ***XXX***. Driven by their transformation and growth, India utilizes the skills of their nationals, the countries improving infrastructure as well as their financial and legal compatibility with
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The first characteristic that should be examined is the financial aspect and how the transaction would take place. Since India’s form of money, an Indian Rupee (INR), is different than the American dollar, the currency must be exchanged prior to the transaction. India’s foreign exchange control policy is regulated by the Foreign Exchange Management Act (FEMA) ***XXX***. The purpose of FEMA is to ensure external trade and payments are conducted with simplicity and ease while advocating the development and maintenance for the foreign exchange market throughout the world

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