International Business
International Business
Introduction
The economy of the United States stands out as the most advanced in terms of gross domestic product and technological systems. On the other hand, the Indian economy is among the fastest rising economies in the globe. With an extensive labor force, India’s economy has high levels of output. Both of these countries have excellent economic ties that are evident in numerous sectors. This essay seeks to examine the future of the financial and commercial ties between the two nations.
The future of Commercial and Financial Relationships between USA and India
India is among the most outstanding global economic powerhouses. In recent decades, the country has had exemplary economic. With a populace of over one billion, only the People’s Republic of China is more populous. It is significant to note that the country has an expansive territory that comparable to continental magnitudes. These perspectives present extensive opportunities for international business. The United States of America is among the most notable trading partners for India. Both countries enjoy close bilateral relations in the services and commodities sectors. Consequently, it is fundamentally essential to examine the future of financial and commercial relationships between these countries.
The first pertinent aspect of consideration with regard to the future of bilateral relations between these countries pertains to technology transfer. Although India has made tremendous strides in terms of technological advancements, it is still miles behind compared to the United States. As the most dominant force in the global technological arena, the United States can offer a lot to the Indian technological framework. This provides an excellent opportunity for American investors from the technology sector. The demand for technology is extremely high in India. This mostly applies to the youth and the middle class. Technological ties between these countries will be vital in terms of strengthening financial and commercial relationships in the future.
Apart from technology, another essential aspect pertains to tourism. Because of the excellent bilateral relations between India and United States, residents of both countries can travel freely. This is an excellent platform for enhancing tourist activities between both nations. Indians have a lot to offer to Americans in terms of tourism. This includes the country’s vast national parks to the exquisite cultural heritage. Additionally, India has a rich cultural heritage which would appeal to visitors from all parts of the world. On the other hand, Indians would be spoilt for choice in terms of the available tourist attractions in the United States. Across all the 50 states, America has numerous tourist attraction sites. Consequently, tourism is an area that would help in enhancing the commercial relationships between the two countries.
Another essential aspect of consideration with regard to the future of economic ties between India and United States is medicine. India’s medical sector is among the most highly advanced in the globe. This is because the country has an excellent framework for research in medicine. On the other hand, the cost of health care in the United States has been on the rise. Consequently, Americans would have the opportunity to access affordable medical care in India. This is an essential perspective that would help in strengthening the economic relations between both countries in coming years. The two economies have an excellent framework for automobiles. For instance, TATA is a giant Indian company that produces different kinds of automobiles. The countries would benefit each other in terms of raw materials and intelligence in the automobiles sector. Consequently, this is an essential perspective in terms of strengthening the economic ties between the two nations.
Due to the vast tracts of land, India has the capacity to excel in the agricultural sector. In rural India, most residents participate in small scale farming activities. This implies that the country’s current agricultural systems do not maximize on its inherent potential. However, the Indian government has been spearheading efforts to invigorate the country’s agricultural sector. Within the next few years, the country’s agricultural sector will have the capacity to produce sufficiently for the local sector and also for exports (VCU, 2012). This presents a vital platform for streamlining the economic relations between both countries in coming years. It is essential to note that the Indian currency has been appreciating in recent years.
In contrast, the vigor of the United States dollar in international markets has been on the decline. These perspectives might have far reaching implications on the economic ties between these countries in the future. For instance, the appreciation of the Indian currency might cause a deficit in the balance of trade for India. A similar scenario would have positive implications upon the balance of trade for the United States. The enhancement of the commercial ties between both countries would create numerous employment opportunities for Americans and Indians. For instance, there are numerous upcoming business establishments across different sectors of the Indian economy. Some of these sectors require technical manpower which may not be readily available in India. Similarly, American companies can easily access affordable labor from within the Indian population. This is extremely helpful in terms of streamlining the transfer of labor between both countries.
Influence of the Video
The video has tremendously influenced my understanding of India’s relevance in international business. Firstly, the video provides a clear highlight of the emergence of India as a global economic powerhouse. This is evident through the speech from the Indian ambassador to United States. In her speech, she emphasizes on the numerous business opportunities available in the Indian economy (VCU, 2012).
As an emerging economic powerhouse, India will have extensive influence on international economic trends in the future. For instance, a decline in the performance of India’s economy might have far reaching implications in terms of inflation rates. The video was also extremely insightful with regard to the different strategies of the Indian government for streamlining the economy. For instance, the government encourages foreign direct investments from trading partners such as the United States. This is an excellent perspective in terms of career growth.
Conclusion
Throughout the essay, different perspectives about the future of economic ties between India and the USA are evident. Both countries enjoy close bilateral relations in the services and commodities sectors. Consequently, it is fundamentally essential to examine the future of financial and commercial relationships between these countries. The first pertinent aspect of consideration with regard to the future of bilateral relations between these countries pertains to technology transfer. Another essential aspect of consideration with regard to the future of economic ties between India and United States is medicine. India’s medical sector is among the most highly advanced in the globe.
Reference
VCU (2012). 18th International business forum. Accessed on 3rd December 2012 from http://www.business.vcu.edu/ciba/2193.html
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