Question

Consider a hypothetical US company who is considering its expansion in India (soft drink company)

Need the below information about India which characterstics of labour force in terms of size and unemployment rate.

Labour Force

a)Size

b)Unemployment rates

:250 words

No copy please.Use your own words.

Answer 1

Globalization resulted in companies from one country expanding their businesses by entering other countries to reap the benefits of a new customer base, cheap and skilled labor, ease of setting up businesses, availability of land and natural resources etc. As the most powerful country in the world, US has produced thousands of firms that have become leaders not only in the domestic market but also in foreign markets.

Below is how a US soft drinks company can succeed in the Indian market by considering various factors-

1. Labor force size – India has a huge labor resource base due to the huge population and currently boast with the highest amount of younger workforce between 20-40 age group thus providing opportunity for the local and international companies to recruit and utilize them.
2. Availability of skilled and unskilled labor – The workforce in India comprises both skilled and unskilled labor as required for the jobs or positions. Considering the unemployment rate in India, it is a win-win situation for the companies as well as individuals if they are recruited by international firms.
3. Labor wages and benefits – Compared to the US, the labor in India are much cheaper and more skilled though cultural differences are predominant. The firm can localize their HR practices and follow the laws of land to ensure the labor are treated with fairness and respect and ensure they are provided with the required wages and benefits.
4. Retention of labor – By providing decent working conditions, wages and benefits, the firm can retain labor for longer duration thus avoiding additional costs of hiring and firing.