Intb 6200

Week 3 Activity 1: Research Activity: Economic Outlook

As our company looks to expand into a foreign market, India, there are many things that need to be considered to ensure that we are able to be successful in this new venture. Looking into various aspects such as the Ease of Doing Business, Foreign Direct Investment Confidence Index, and the World Development Indicators from the World Bank, such as Economic Policy and External Debt, Education, and Infrastructure.

Looking at the Ease of Doing Business Index, India was 134th in 2014 and moved up to 130th for 2015. The only area that they stand out in is that they are highly ranked for protecting minority investors. Otherwise, it is not easy to move into India and do business independently.

Foreign Direct Investment Confidence Index can be used to determine how the future looks in terms of foreign countries entering the market of that country and their likelihood of success. India dropped outside of the top 10 for the first time since 2002 in the last rankings and over 33% respondents think they will do worse than their projection indicates.

The World Development Indicators, Economic Policy & External Debt, Education, and Infrastructure also give details on potential success of our business in India. For Policy and Debt, Policy is difficult by seeing the Ease of Doing Business Index information and Debt has been steadily increasing, but that may be due to infrastructure investments, since their life expectancy is increasing. Education enrollment has stayed steady, but is beyond any comparable country in the area, showing that computer need would be increasing. Finally, Infrastructure would be increasing due to the increasing debt and the need for additional homes and population capacity since both are increasing, along with national income.

Overall, India may be a difficult place to enter the market, but would be more than worthwhile if we are able to do so.