Hemant Sachan- Global Bussiness

Case study on Global Business Submitted to SUBMITTED BY Dr. Prashant Sarangi HEMANT SACHAN

M0729 SEC-A

Ques1. Comment the statement of Japanese Prime Minister. ANSWER-‘ We are now in an era in which Asia is currently experiencing a process of transformation and India, too, is changing, thus elevating the importance even further of India and Japan cooperating as true global partner’. The above statement made by Japanese prime minister exhibits that India is adopting the

strategy of globalization through liberalization, privatization and globalization since 1991 and is giving chance to foreign countries to invest here. Japan is also providing assistance to India in terms of (technology, automated equipments and so on). So, there is a transformational process between both the countries.

Ques 2. What are the areas which Japan wants to highlight to Indian officers to allow Japan to trade with India? Answer 2 The areas which Japan wants to highlight to Indian officers to allow Japan to trade with India include cooperation of Indian higher authorities, treaties towards betterment of these relations. Their higher authorities are seeking for a good

economic relation between both the countries. Japan has also highlighted the areas of- Iron Ore, textiles, plastics, steel and chemicals. Ques3:-What are the draw backs that Japanese Prime Minister highlighted in India that de-motivated the Japanese investors? ANSWER :The drawbacks highlighted by the Japanese Prime minister that de-motivated the Japanese investors are:poor infrastructure, poor-labour laws, intellectual property problems, and cultural differences. Poor Infrastructure:India is very poor in infrastructure. Infrastructure refers to the roads, railways,

communication and various and services such as banking system of any country. Many companies perceive that India’s poor infrastructure would be unable to create adequate profitability. So, Japanese investors are not investing in India.

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Poor labour laws:-

In India either the labour laws are not upto the mark or if they are then they are not implemented. They are lacking in one or the other way, because of which the production is affected and ultimately the profits. This is one of the major reasons that Japanese players are not showing their interest in investment in India. Cultural differences:-

Indian culture is rich is nature. It is totally different from the other nations, which demotivates the Japanese investors. Beside this Japanese that many Japanese companies also do not find India a very attractive investment location and intellectual property problems as well.