Global Business Today 8th Edition by Charles Hill

Exercise 18

Reread the Country Focus on India and answer the following questions:
a. What kind of economic system did India operate under during 1947-1990? What kind of system is it moving toward today? What are the impediments to completing this transformation?
b. How might widespread public ownership of businesses and extensive government regulations have affected (i) the efficiency of state and private businesses, and (ii) the rate of new business formation in India during the 1947-1990 time frame? How do you think these factors affected the rate of economic growth in India during this time frame?
c. How would privatization, deregulation, and the removal of barriers to foreign direct investment affect the efficiency of business, new business formation, and the rate of economic growth in India during the post-1990 time period?
d. India now has pockets of strengths in key high-technology industries such as software and pharmaceuticals. Why do you think India is developing strength in these areas? How might success in these industries help to generate growth in the other sectors of the Indian economy?
e. Given what is now occurring in the Indian economy, do you think the country represents an attractive target for inward investment by foreign multinationals selling consumer products? Why?