Question

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.

Country is india

Answer 1

Since the late 20th century, global trade has changed. Countries are now exchanging parts and components that together generate a finished commodity instead of trading finished products such as vehicles. The manufacturing inputs can be obtained from the most economical location, facilitated by reduced transportation and communication expenses. Every nation participating in today's world trade has its position in this worldwide value chain.

Tracking a country's particular value chains worldwide paints a revealing image of its sector-by-sector financial inclusion. For example, India is closer to Asia and the Southeast Asian area in manufacturing, particularly for electrical and optical equipment. On the other side, services demonstrate greater integration with Western countries like the United States, the United Kingdom, a few European nations, and Hong Kong. Some industries are outstanding, including the "unclassified production" and recycling industry, which involves gems and jewelry, where India ranks second.

Textiles, an employment-intensive sector where Indian exports have traditionally flourished, continues to perform strongly. India, like other nations, has negotiated several free trade agreements over the past two centuries, such as those with ASEAN, Singapore, Japan, and South Korea, to maintain it up. By decreasing trade barriers, these facilitate international trade. Several other FTAs are under negotiation, such as those with Australia, Canada, Thailand, and Israel.

In a globe of increasingly fragmented manufacturing procedures, however, it is limited to condition preferential access to India on greater added value for the single country. Rather, customs laws of origin intended with a more regional or sector-specific strategy would enhance the integration of India with global value chains.

Instead, India needs foreign investors to purchase Indian inputs from other nations for effective production, which runs counter to the design of enhanced production through value chains and makes the nation a less attractive investment destination for global production.

Finally, global value chains are most beneficial for countries that contribute in the higher value-added segments of a production chain: it’s more lucrative to make the computer that controls the automated vehicle than its wheels.