International Financial System

International Expansion

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International Expansion

Introduction

The country selected for the overseas establishment and the purpose of expansion in India. Since it is a big country with the number of the population increasing rapidly, the business opportunity would be huge and this would be a huge break for the bank as the increasing population would provide a benefit to the customer base. But there will be some challenges that are part of the routine when any new establishment is settled in a new region/area. Since the bank establishment would be new in the country of India, the following are some challenges that must be faced and solved patiently.

1 - What are the cultural, ethnic, social, and educational characteristics?

Ans – since India is a very different country as compared to the US, the social norms and values also vary a lot. In terms of business, the cultural, ethnic, social and educational characteristics are more customer based and personnel type. The interaction between the customers and the seller is interlinked as they get to know each other personally, share common family structures and goals, face the same societal challenges and the same kind of refuge they seek. Culturally strong and motivated but demand extra care and attention because of the type of businesses that already run these places.

2 - Describe the political and legal systems.

Ans – political system of India is a federal democratic parliamentary system in which elections are held every five years and they control the access to everything. The Legal system is constitutionally based as everything is explained in the constitution and followed according to that. Similarly, both legally and politically, international exposure of business is permitted and supported as by doing so, the market value of India is increased and they have emerged as a rising power in South Asia. According to the legal system, civil, common, religious and customary laws are mixed u design a more relaxed and inventory style legal system.

3 - How much does the government intervene in the private sector?

Ans – the government of India is supportive of the private sector and they don't like intervening in that sector because of the think that the private sector should be kept separate. Like governmental institutes, private organizations are free to make their decisions but they have a check on them by the government. Where the investment is being made and how much, must always be brought into the consideration of the government so they know what is happening inside their government.

4 - How will that affect your financial institution?

Ans – keeping in view the above-mentioned scenario, my bank's financial institution would work just fine because the Indian government has allowed the international brands to operate their international office from their allotted platform. In this way, the promotion of the Indian Market is ensured and there will be no financial pressure on the new incoming organization.

5 - What type of economic system does it have?

Ans – the economy of India is a mix-developing market as they eye the top position. For this matter, they have opened their doors for international brands so they operate here and increase the market value. In the region of South Asia, India has progressed massively as an open market with a huge influence on the international market. They have kept their original system of income, agriculture, alive as they rely 50% on it.

6 - What is the history of that economic system?

Ans – earlier India used to be an agricultural production country in which they heavily relied on agriculture like farming. They did most of their trading in farming products but as globalization hit them and they learned quickly the new ways of advancement, they adapted to the new theory where they focused on agriculture and modern technology with the same energy.

7 - How is the country involved in international trade?

Ans – India is very much involved in international trading as they seek the international brand tag. Already the fifth highest-grossing economy of the world, the customer base is huge which helps a lot in international trade names.

8 - How does the government get involved in trade issues?

Ans – the government does get involved in the trading issues because they have to keep a track of which country is trading with them. since they are emerging as a power, they are bound to have enemies and to protect themselves from misguidance, unethical and unnecessary trading, the government likes to stay involved in trading issues. Although they offer complete control, the government of India always stays aware of what kind of business is being made internationally and what new names are coming in the country.

9 - Will that help or hurt your financial institution?

Ans – in a way, the involvement of government is considered to be okay became they need to make sure that everything is being done according to the circumstances and political scenarios. But the private sector is also aware of all kind of legality and international laws as well. Having such situations won't hurt the financial institution since the other country is only doing what is best for them. Of course, a middle solution is do picked up to keep the deal out of any trouble, fine or any other kind of penalty.

References:

Unknown. (2020). Legal system of India. Retrieved on 6th February 2020. https://ox.libguides.com/c.php?g=422964&p=2888488

Notani, Sanjay. (2019). International trade in goods and services in India: overview. Retrieved on 6t February 2020. https://uk.practicallaw.thomsonreuters.com/w-009-2204?transitionType=Default&contextData=(sc.Default)&firstPage=true&bhcp=1