International Business in India looks really lucrative and every passing day, it is coming
up with only more possibilities. The growth in the international business sector in India is
more than 7% annually. There is scope for more improvement if only the relations with
the neighboring countries are stabilized. The mind-blowing performance of the stock
market in India has gathered all the more attention (in comparison to the other
international bourses). India definitely stands as an opportune place to explore business
possibilities, with its high-skilled manpower and budding middle class segment.
• Information Technology and ElectronicsHardware.
• Pharmaceuticals and Biotechnology.
• Banking, Financial Institutions and Insurance &Pensions.
• Capital Market.
• Chemicals and Hydrocarbons.
• Agriculture and Food Processing.
• Power and Non-conventional Energy.
• It is the process of selling goods and services produced in one country to othercountry.
• Exporting maybe Direct or indirect a
• Direct exporting involves you directly exporting your goods and products to another overseas
market. For some businesses, it is the fastest mode of entry into internationalbusiness.
• Indirect Exporting involves exporting through domestically based export intermediaries. The
exporter has no control over his product in the foreignmarket
• It is strategy used by companies to enter a foreign markets by
joining hands and sharing ownership and management with another
• It is used when 2 or more companies want to achieve some common
objectives and expand international operations.
• The common objectives are:
– Risk reward sharing
– Foreign market entry
– Technology sharing
– Conforming the govt. regulations.
• It is cost effective strategy used by companies to reduce the costs by
suppliers rather thantransferring portions of work to outside
completing it internally.
– Swiftness and expertise in operations
– Concentration in core process rather than the supporting ones .
– Risk of exposing confidential data
– Hidden cost
• In this mode an independent firm called the franchisee does the business
using the name of another company called the franchisor. In franchising,
the franchisee has to pay a fee or a fraction of profit to the franchisor.
– Low investment
– Low risk
– Franchisor understands market culture, customs and environment of the host
– Franchisor learns more from the experience of the franchisees
– Franchisee gets the R&D and brand name with low cost
– Franchisee has no risk of product failure.
• It is a special mode of carrying out international business. It is a
contract under which a firm agrees – for a remuneration – to
fully carry out the design, create, and equip the production
facility and shift the project over to the purchaser when the
facility is operational.
• Turnkey Projects can be various types:
– BOD – Build, Owned, and Developed
– BOLT – Build, Owned, Leased, and Transferred
– BOOT – Build, Owned, Operate, and Transferred
• In this mode of entry, the manufacturer of the home country leases the right of
intellectual properties, i.e., technology, copyrights, brand name, etc., to a
manufacturer of a foreign country for a predetermined fee. The manufacturerthat
leases is known as the licensor and the manufacturer of the country that gets the
license id known as the licensee.
• Foreign Direct Investment involves a company entering an overseas market by making
a substantial investment in the country.
• This strategy is viable when the demand or the size of the market, or the growth
potential of the
market in the substantially large to justify the investment.
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