Growth of International Business and FDI has been drastically increased from no. of years especially in India because of so many reasons like seeing positive changes in Economic Conditions of Country by exporting the excess goods of one country to another country, change in the lifestyle of people and a lot more. So, the Growth of International Business is divided into the following two parts-
- Why Growth (includes the Reasons for the Growth of International Business.)
- How Much Growth (includes the Trends and Statistics of the Growth of International Business in India.)
So, Let’s discuss both in Detail.
Why Growth (Reasons for Growth of International Business)?
- Change in Lifestyle- The Most Common Reason for the Growth of International Business is that it has changed the lifestyle of People by adopting the other countries lifestyle, their Branded products and more even at good prices.
- Increased Competition- International Business Growth has also risen the Competition between Domestic Companies and Foreign Companies. Foreign Companies are selling their Good Quality Product to Domestic Country Peoples at cheaper prices which rose to the competition.
- Existence of WTO Bodies- Another Reason for the Growth of International Business and Globalization is because of the emergence of WTO Bodies. WTO stands for World Trade Organization which has come with the fair trade rules between every country. It has a motto of One Country as one Vote. It has not given any special privilege to any developed nations. Because of WTO fair trade rules, even the developing countries also observed so much growth in International Business.
- The demand for More Technology- As Increase in the Competition, so many Domestic Companies started giving more Quality Products like the Foreign Companies to retain competition. But to available the more Quality Products at lesser prices to the Customer requires good Demand of Technology in their Machines. So, the Demand for Technology has led to the Growth of International Business.
- More Employment Opportunities- International Business has led to an increase in the Employment Opportunities of Exporters, Importers, the carrier of goods at Seaport, integration of Export-Import Bank(EXIM Bank) and a lot more.
- Increase in the Knowledge of both Customers and Firms- As the goods are started easily available from another country, consumers start getting more good choices for every product. This leads to an increase in Customer Knowledge. Firms also started knowing about the different technologies used by foreign companies to make more Quality Product at lesser prices.
- Due to LPG (Liberalization, Privatization and Globalization)- In the Emergencies of 1991 for India, the emergence of LPG by Dr Manmohan Singh to open their Economy was the Biggest Reason for the Growth of International Business in India. After opening up of Economy, so many Foreign Companies started coming in India and it also elevates their Economic Growth too.
- Due to Interlinked Interests- There are very fewer countries in this World who has the availability of all the goods. Some Countries have Excess of some goods and lack of some goods. So, to utilize the excess and lack of goods has risen to the need of Interlinked interest between the countries.
- Due to Lower Down of Tariffs- With the Emergence of Economic Integrations like WTO, NAFTA, SAFTA, BRICS has reduced the tariffs to do the trade between different countries. So, this is also the reason for its Growth.
- Due to Spin-Off Benefits- It means that If Your Product is less demanded in your Domestic Country. But It has good demand in other countries. So, this also gives the Benefits to Companies to grow in the International Market and after getting good recognition from other countries, the Demand of Product in the Domestic Market will automatically be regenerated.
How Much Growth?
- India’s Overall Exports (including Merchandise and Services) in April-August 2019-20 is around USD 227.36 billion shows a positive growth of 3.2% from the same period of last year.
- India’s Overall Imports in April-August 2019-20 is around USD 268.24 billion shows a negative growth of 1.18% from the same period of the previous year.
- In total, there is a trade deficit of USD 40.89 billion.
- The Export of Merchandise in April- August 2019-20 is USD 133.54 Billion which exhibits a negative growth of 1.53% from the same time period of the previous year and Imports for the Same Time Period is USD 206.39 Billion which shows a 5.68% negative growth.
- So, in Merchandise there is a trade deficit of USD 72.85 Billion in April-August 2019-20.
- The Export of Services in April-August 2019-20 is USD 93.82 billion states the positive growth of 10.78% from the last year same period. The Import of Services for the same time period is USD 61.86 billion shows a 17.54% positive growth.
- In the case of Services, there is a surplus of USD 31.96 billion.
- The Major Group of Exports of Merchandise goods in April-August 2019-20 are Iron Ore, Electronic Goods, Spices, Marine Products, Mica, Coal etc.
- The Major Group of Imports of Merchandise Goods in April-August 2019-20 are Coal, Coke, Briquettes, Organic and Inorganic Chemicals, Machinery, Electrical and Non-Electrical Goods.
The Above Stats data is taken by the Dept. Of Commerce Website.
So, this was all about the Reasons for the Growth of International Business and the Stats/Trends. I hope You have liked this. If You like this or have any query please write it in the comment section.
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