Question

1)what is the General External Environment in India? (include these segments: demographic; economic; political/legal; sociocultural)

2) what does the article tell us about global business pitfalls when trying to enter a new market?

Answer 1

1. General External Environment in India:

Political:

India is the biggest democracy in the World. The government type is federal republic. Based on English common law, judicial review of legislative acts, accepts compulsory ICJ jurisdiction with reservations, separate personal law codes apply to Muslims, Christians, and Hindus. The political Situation in the India is more or less stable.he taxation system is well-developed and several taxes, such as income tax, services tax and sales tax are imposed by the Union Government. Other taxes, such as octroi and utilities, are taken care of by local bodies.

Economic:

The economy of India has been significantly stable, since the introduction of the industrial reform policies in 1991. As per the policy, reductions in industrial licensing, liberalization of foreign capital, formation of FIBP and so on, has resulted in a constant improvement of India’s economic environment.

Social:

India is the second most populous nation in the world with an approximate population of over 1.1billion people. This population is divided in the following age structure: 0-14 years – 31.8%, 15-64 years – 63.1% and 65 years and above – 5.1%. It describes the characteristics of the society in which the organization exists. Literacy rate, customs, values, beliefs, lifestyle, demographic features and mobility of population are part o the social environment. It is important for managers to notice the direction in which the society is moving and formulate progressive policies according to the changing social scenario

Technological:

Technology significantly influences product development and also introduces fresh cost-cutting processes. India is served with both 3G and 4G technology which has facilitated several of their technological projects. Furthermore, the country also possesses one of the strongest IT sectors in the world, promoting constant IT development, software upgrades and other technological advancements.

Legal:

In India take many type of permission to the sate govt or central govt. In India many type of act like license permission, copyright permission, and many types of other permission.  Employment law  Trade and product restrictions  Health and safety regulations  EU and international laws  Monopolies commission

Environmental

In India we know that many types of enviormental problems this are basic things but more important for our enviorment. also biotic factors ,abiotic factors and their interaction with one another. Pollution free industrial activity i.e. is necessary condition of industrial organization. Industrialization and urbanization have resulted in a profound deterioration of India's air quality.

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Ans 2) The global business pitfalls when trying to enter a new market are:

1. Not accounting for cultural differences

2. Not having a plan

3. Not completing the research

4. Expecting ROI too soon