Question

Country is India

Discuss how regional economic integration has influenced the way your country does business with other nations. Does it create more opportunities for trade or just increase the competition? Make some observations about the impact this might have on an organization's decision to invest in the country.

Answer 1

In modern era, regional integration has changed the way of business as done in late 20th century.Regional integration has influenced the business by making a world market as common place, removing trade restrictions promoting free trade.By implementing various liberal trade policies, it create global markets by opening up nation's boundaries removing taxes & import export tariffs among the member nations.

To promote a healthy competition globally, is also an impact of regional economic integration.Due to economic integration, economic output increases internally as well as available externally.Now by removing regional blocks goods & Services are available internationally which offers a more trade opportunities to member nations.

With change of global business from trade of finished products to exchange of parts & components to produce a finished goods. India has also following the same trend by participating in World Trade making its place in global value chain.

India is an emerging economy, with large skilled and unskilled labourforce which offers services at low charges.India is going global in various sectors such as manufacturing, information technology.

In business process management & outsourcing of information technology and software support to European and western countries India fosters its economic growth in last 15 yrs which helps them to compete well in the world market.

In manufacturing sector, India has connected to various Asian countries for supply of electrical & optical goods. In textile industries, India has traditional as well as international market.By increasing export to other countries of textile products, India makes strong place in Textile sector in value chain participation.

Indian goverment has also liberalized trade policies to promote free trade internally as well as in world market.The Make in India initiative is one step in the direction. India is a developing country, which requires foreign investment for more efficient production, for which it negotiate with various nations through trade agreement.

Looking to above factors it is profitable to invest in Indian economy.