The paper "Small Players Frock to India" is a great example of a business assignment. India is the most populous country in the world. The country is also ranked amongst the top five richest countries in the world despite its population. The country has a stable political and economic system. India has a good infrastructure and has 70% of its population actively involved in the production of goods and services. India attracts most foreign investors due to the increasing trend in economic value. Question 1 Leethal fashions accessory can face various external environmental factors as it tries to venture in outsourcing in India.
One of the various factors is the language barrier. India has a culture and religion, which they respect and would prefer to preserve rather than follow western culture. This reason is likely to influence the involvement of Leethal accessories in India. Due to preserved cultures, it will be difficult to penetrate the Indian market with foreign goods and products therefore these factors are most likely to affect the investment of Leethal fashions accessories (Nambiar, 2006). Another external force that is likely to affect the company from venturing into the manufacturing industry is also the stiff competition in India.
India is one of the fastest-growing economies in the world with both stable and political policies on the economy. India has also many industries venturing in production in a variety of products. This poses a threat to foreign investors in the country. There are also stiff competitors from outside the country who are also interested in investing within the Indian economy. Slackened regulatory policies in India are an external factor that will affect Leethal fashion accessories in outsourcing in India.
The lack of regulation leads to exploitation of investors. Small businesses are also likely to be wiped out if not protected. The small businesses are also likely to be involved in paying higher tax rates. Employee’ s rights may also be infringed and this will result in scaring away investors like Leethal fashion accessories. Market demand is another external factor that will have an impact on Leethal accessories as they try to venture in to India’ s economy. The forces of demand and supply will have positive and negative effects depending on the market condition. Higher costs of production are some of the external factors that may affect the Leethal organization as they try their manufacturing business in India.
The costs may rise from longer production processes faced by most of the foreign investors in India (Green, 2006). Despite India enjoying a lot of investors in their country, the business ministry has ensured the protection of some of its industries by limiting access to raw resources to some of the foreign investors. India has policies restricting importation while encouraging many exports. Question 2 Many Australian manufacturers are faced with major manufacturing problems ranging from increased labor costs, rise in costs of production, lack of raw materials, unstable currency value and stiff competition from other foreign industrial companies.
Many Australians are interested in outsourcing in India and can now enjoy many advantages. The first advantages they are likely to experience are the high-quality standards. Australia has lower standards and low regulation policies. Low regulatory services have an impact on leaving employees with longer working hours. The employees are also likely to face infringement of their rights with low payments.
The payments are also likely to come late. This will lead to a negative impact on the quality of the products.
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