The paper “ Difficulties That Australian Companies Face while Trading in India” is an impressive variant of literature review on business. The tremendous advancement in the economic affairs of India in the recent past has attracted global relationships with other world countries including Australia. The Australian market provides an avenue for establishing a foothold in India and other emerging East-Asia markets. Therefore, Australia is an important component in India’ s strategic priorities of international markets. Australian firms have unlocked the Indian markets as the global economy is struggling to recover from a worldwide recession. Looking beyond the surface of India’ s global economy shows that it has faced various problems in the previous years. According to Global Competition Index 2010-2011, shows that various multinationals are scared but are willing to go right about entering Indian markets.
The companies are queuing up to do business with India in President, Deepak-Raj Gupta, and Canberra Chapter despite the challenges. The companies are experiencing delays in their entry processes as the Australia-India business opportunities outnumber the impediments. Corruption has been cited to be common in entry processes and other operations.
Most people need to be sure about what they are investing in as well as whether they are investing in legitimate businesses. The typical situation seen in most Australian exporters is that India has DS-RCA erosion with respect to Australia. The observation points out to lack of India’ s focus on eastern markets. India is neck-to-neck competing with China in that Australia is sometimes divided between the two. Lack of focus presents a factor that leads to small trade competitiveness (Pargaonkar and Ravishankar, 2012) The system of federalism in India, as well as those in Australia, is one of the challenges that have been realized.
According to Harcourt (2014), there are also overlapping regulations that affect the business between the two countries. For example, ‘ License Raj’ has left negative effects and a red tape legacy throughout India regardless of the recent improvements. Another global challenge that is facing Australia’ s situation while trading with India is demography. The issues are well understood when the situation of young and productive personnel is explored. It is noted that India’ s young are more concentrated to the east of the nation.
The problem is identified because many jobs that would have been facilitated the trading process are found in the south and the west of India (Harcourt, 2014). Another identified challenge is the issue of raised expectations in the labor market. The expectations are unrealistic as in reality; a not person is a rocket scientist or Information Technology entrepreneur. The challenge also faces India’ s need to move its educational value changes beyond call centers (Harcourt, 2014). According to Nicola Watkinson (Austrade's Trade Commissioner), the first challenge for Australian organizations is not to view India as a single market.
The problem is to pick a section of it to start with and consider how they could do business in that given location. The global challenge comes in because of different rules that apply to different states with unique and distinct jurisdictions. The challenge forces the Australian organizations to go into one location before going to another. A company should succeed in one area as one market before expanding out from that part to other Indian regions making the expansion slower.
The second challenge according to Watkinson has a market entry strategy. The Australian companies face these global challenges in relation to the nature of entry strategy to use. Most of the companies are in a dilemma of whether to they will have Indian distributors, enter a JV partnership or set own companies (Johnson, 2015). Branding becomes a problem because more attention is given, and funds used in research that determines the best approach. The companies are struggling to have good partners with no historical problems regarding corruption and other issues in the current complex market.
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