BU7412 International Business Assignment

BU7412 International Business Assignment Sample 


Cross-border trade and business are also included in international business while the products need to be supreme in quality in the international market due to this reason it is extremely challenging to do business in international countries.

On the other hand, it may be stated that international companies need to have independent operations in the trading country and try to make a healthy relationship with the government of that country which will help you to spread the business.

In this report, challenges, barriers, and competition faced by India in trading with China and Pakistan will be discussed along with initiatives undertaken to overcome these.

Critical evaluation of challenges, barriers, and competition faced by India in trading with Pakistan and China

Challenges and Barriers

India is the 7th largest country by land and the second most populous country after China indicating that India has the potential to perform well in the international market. International business includes the grade of products, services, business technologies, and proper knowledge of the national and international borders.

A company also needs to launch products according to the demand of the customers, marketing the product is extremely important to meet the customers’ satisfaction. India had trade with Pakistan and it may be stated that India had a trade surplus with Pakistan for five to six years.

However, Pakistan banned bilateral trade with India in the month of august 2019 due to constitutional changes in Jammu and Kashmir. India also took Pakistan’s Most Favoured Nation status after several cross-border military conflicts which indicates that the present trade relation between India and Pakistan is unstable. Pakistan was one of its top trade partners of India in recent years the trade relations between the countries have been highly volatile.

Pakistan only imports drug products and pharmaceutical products from India to assure the proper supplies of drugs and medicines. Before the trade ban, India exported cotton products to Pakistan which indicates that there is a huge demand for Indian cotton products in Pakistan. The Indian government took some steps to remove the trade ban which indicates that the trade relationship between India and Pakistan will be stable soon. On the contrary, it may be argued that any product needs to be tested and precautionary irrespective of the scientific uncertainty of its harmful effects (Maguire, 2006).http://BU7412 International Business

The main obstacles to the trade between India and Pakistan include tariff and non-tariff barriers which consist of strict standards of quality, time-consuming procedures and waiting periods at the border, strict visa policies, and a lack of proper infrastructure. India has a better infrastructure than Pakistan which derives that the manufacturing unit of India is far better than Pakistan.

On the other hand, it may be argued that local companies in India are growing very fast due to this reason the companies in India know the consumers very well. The India-Pakistan border is the most disturbing border in the world and most of the trade between the countries is done by transportation through roads and ports and the waiting period in the border area is so much longer.

Due to this reason, it will take so much time to trade in both countries. However, it may be stated that both of the countries have strict visa policies which are not suitable for bilateral trade. Furthermore, it may be opined that the international business strategy of a country has a direct relationship with a particular plan or action to achieve future organizational objectives (Harreld, 2007)http://BU7412 International Business

On a contradictory note, it may be stated that China is the leading business partner of India which derives that India and China have an extremely good trade relationship. However, in 2020 India and China were involved in a border conflict that affected their trade relation.

In 2021 China regained its position as the leading trade partner of India which indicates that India and China both have effective foreign policies to control international trade. India established so many strategic economic dialogues to maintain an organizational relationship with China which helps India to improve its infrastructure and technology.

The dialogue between the NITI Aayog and the Development Research Centre of China has increased the export and import percentage between the two countries since 2015 (IndianEmbassy, 2021).http://BU7412 International Business China is more financially developed than India which indicates that the percentage of imports is always dominated by China. However, in the last year, India had a trade deficit with China and the export rose significantly, led by the iron and steel industry.

India needs to reduce the trade deficit with China to implement the fiscal policy which indicates that China has a more developed fiscal policy than India. India can reduce the import of chemicals, bicycle parts, electrical components, and cosmetics to mitigate the trade deficit. A strong glocal strategy and glocalization of business need to be used by multinational companies which helps the companies to spread the business globally and also locally (Svensson, 2001).http://BU7412 International Business


India has a better manufacturing unit than Pakistan which indicates that the production system in India is extremely fast than India. On the other hand, it may be opined that Indian products are supreme in quality according to the market of Pakistan while the product qualities of Pakistan are unable to meet the customer’s satisfaction.

It may be stated that in Pakistan, there is a huge demand for Indian products such as medicines and chemical products which indicates that India has a more systematic supply chain than Pakistan. In the international market, the demand for Indian products is higher than the product of Pakistan which derives that products of Indian are met the satisfaction level of consumers.

The packaging quality needs to be attractive and strong although it has been seen that products of Pakistan do have not a strong packaging quality due to insufficient technology. On the other hand, it may be argued that India has technological supremacy rather than Pakistan. Moreover, India has various types of -products that are extremely attractive to the customers such as spices, handicrafts, and many more.

Local brands of India are superior in quality to the local products of Pakistan which meets the expectations of the local customers and help a company to retrieve more data about the target customers.

The local companies of India are well acquainted with the rules and regulations of the government although it has been stated the local companies of Pakistan have not followed the rules and regulations of the government.

Furthermore, it may be argued that it is easier to do business in India rather than in Pakistan due to this reason local brands in India easily merge with global brands. On a contradictory note, it may be argued that WTO observed economical growth and the poverty level is also reducing due to the economical growth which indicates that the per capita income of India is rising (WTO, 2021).http://BU7412 International Business

In China, it has been seen that the Chinese are more skillful than Indians which indicates that China produces more than India. China and India both are developing nations although it may be stated that the technology of china is more effective than India.

On the other hand, it may be argued that the supply chain in China is more efficient than in India which indicates that China exports more products than India. Moreover, technologically China has more supremacy over India which helps China to export more products rather than India.

The textile industry of China is more developed than in India though it has been noticed that the labor costs in China are extremely cheap rather than in India. Due to this reason, India faced tough competition in the textile industry all over the world. On the other hand, when the nationwide lockdown was implemented due to COVID-19 in India, economic activities and international business were significantly hampered (WorldBank, 2021).http://BU7412 International Business

The labor cost of China is extremely cheap which helps China to produce more electronics products at affordable rates than India; due to this reason in the global market, India has faced competition to sell electronic products.

On the other hand, it may be opined that the information technology of India is growing faster than China which indicates that India successfully sells IT products at a low price. Consumers demand a quality product at a low price which indicates that a company needs to make good quality products at a low price.

Local markets play a crucial role to increase the productivity of a company though the company needs to implement a global strategy to increase its business all over the world. On a contradictory note, it may be opined that a company needs to build business-to-business relationships to increase the engagement of the products. A country needs to simplify the fiscal policies for the development of the local companies which helps the company to increase productivity.

Critical analysis of steps and initiatives taken in order to overcome the challenges and issues

International business has emerged as an essential aspect of a country’s economic development and developing countries such as India depend on international trade to a great extent in order to maintain their growth and development.

However, it may be asserted that growth and development in business also include several challenges and difficulties that a country faces while implementing international business strategies. India has been facing serious problems and obstacles from Pakistan and China in trade and commerce since independence and several policies and strategies have been implemented in order to overcome those issues.

Moreover, it may be added that international firms are sometimes compelled to take certain decisions which will affect trade as well as international relations due to the influence of some regulatory authorities and coercive laws (Yin, 2008).http://BU7412 International Business However, it may be opined that India has strongly faced all the difficulties while trading with China and Pakistan by implementing several trade policies and regulatory rules.

It may be added that India has adopted a flexible mode of business where cross-cultural aspects have been dealt with with utmost care and precision. On the other hand, it may be argued that language has always given focused on improving the logistics in order to maintain a smooth delivery process.

It may be steed that the role of supply chain management is of immense importance as it decides the effective movement of goods and products to other countries. India has given extra emphasis to improving its supply chain and logistics so that a large number of shipments may easily move from one country to another.

Apart from this, India has been constantly trying to improve its relationship with Pakistan and China so that trade and business may be carried on smoothly and without any major problems. The government of India is constantly improving its foreign policies so that international trade may become more prosperous and profitable.

On a contradictory note, it may be asserted that Pakistan and China often become rigid and their foreign policy affects India adversely. Furthermore, it may be added that Pakistan and China need to show cordiality in the way India shows cordiality and friendliness towards them. It may be implied that if all the countries show flexibility in conducting international trade, businessmen of all the countries will make a profit and common people will also get affected in a positive way.

Additionally, it may be implied that the government of India has implemented several amendments in its international trade policy in order to provide the companies with a better decision-making opportunity. Strategic decision-making becomes a turning point in international business (D’Aveni, 2010). http://BU7412 International Business

However, it may be mentioned that the government of India never follows a strict or rigid foreign policy as it will clearly harm the economic growth of the nation which will eventually affect the common people of the country. It may be opined that several people depend on trade policy directly or indirectly and in order to maintain their economic prosperity, the government of India has brought several schemes.

These schemes will extend the benefits of trade to the common people in order to make them economically independent and strong. Apart from this, it may be mentioned that the government of India has taken initiatives so that companies and firms may become technologically more advanced and carry on business operations smoothly.

On the other hand, it may be asserted that the Indian government is always active regarding international trade and it has provided free skill development programs to the employees of different firms in order to make them more efficient. These skill development programs will definitely help the companies to perform better and maintain a high brand image in the international market.

Along with this, it may be opined that several government officials and governmental bodies constantly keep a close watch on the changing situation of the international market in order to track the performance of the companies. On a contradictory note, it may be asserted that in order to compete with the products of China and Pakistan, India has adopted a dynamic and multi-stage research process.

The process focuses on constantly researching and developing strategies and policies which will help the companies to fit in a high-velocity international market (Eisenhardt, 2000). http://BU7412 International BusinessIt may be added that one of the most crucial challenges faced by the Indian government is political conflicts with China and Pakistan and their effect on various taxes involved in international trade.

It may be implied that international politics greatly determine the tax structures which may affect a business positively or negatively. However, India has adopted a generous tax structure so that companies and firms do not face severe issues in order to maximize profit and increase the overall economy of the country.

On the other hand, it may be argued that the global environment plays an important role in the field of international trade where countries are required to carry out business operations without damaging the environment. It has become a major factor in international trade and India has maintained all the international protocols and adopted certain laws in order to keep the environment out of danger.

Along with this, the government of India has adopted a sustainable foreign business strategy that enables companies and countries to trade without breaking environmental laws and regulations. However, it may be stated that Pakistan and China often violate the restrictions which creates unwanted trouble in the international sphere.

Moreover, it may be opined that India, always regulated its overall foreign trade policy so that no law gets broken or violated. Furthermore, it may be added that India is a developing country and its economy is emerging in Asia (Dar, 2019).http://BU7412 International Business

Additionally, it may be clearly pointed out that fluctuation in the currency rates becomes a challenging issue in international trade yet India has excellently managed this obstacle. It may be mentioned that the creation of a central currency regulatory board will definitely help any country in maintaining proper transactions without facing any grave issues.

India has also implemented this strategy to manage its currency efficiently while trading with foreign countries. On the other hand, it may be opined that cost calculation and global pricing strategy play an extremely crucial role in conducting business across borders. It may be argued that the pricing of products as well as the quality of products needs to be maintained properly in a balanced way.

Maintaining standard quality is essential while offering the products at a reasonable price becomes a crucial factor to increase market share. Indian entrepreneurs have always maintained this balance which has helped India to overcome several issues and challenges regarding the standard of products in the international market.

It may be added that the nature of business varies extensively from economy to economy where different countries adopt different business policies. Furthermore, it may be mentioned that the intensification of the external market has brought several unforeseen challenges which India needs to address more firmly (Hu, 2019).http://BU7412 International Business

On a contradictory note, it may be implied that establishing local relationships with business partners will definitely provide an extra advantage to the companies where partnerships with several small businesses may provide beneficial support.

It may be stated that companies and firms in India have always tried to establish cordial relationships with regional and local business bodies in order to gain an advantage and maximize profit. On the other hand, it may be mentioned that open-mindedness in searching for solutions to different problems related to international trade has given India the confidence to approach several multinational organizations of repute.

Furthermore, it may be asserted that legal risk is one of the major factors that any country faces while conducting trade in the international market and India is no exception to it. It may be noted that India has faced several legal threats from Pakistan and China yet

it has managed to simplify certain legal terms and conditions in order to canary out business operations quite effortlessly.  India as an emerging economy has been able to draw the attention of marketers which has helped the overall economic prosperity of the country in the past few decades (Hassan, 2019).http://BU7412 International Business

Finally, it may be clearly asserted that India has always adopted to think logically in order to overcome any serious issue and has maintained a positive image as well as a nonaggressive attitude to attract more traders to the international market.


From the above discussion, it may be clearly stated that international business is a complex issue that any country aims to deal with with utmost care and precision. India, as an emerging economy has faced several issues, challenges, and barriers in its course of development yet it has not stopped its effective functioning in the global market.

It may be added that India has maintained cordial and flexible trade relations with its neighboring countries namely Pakistan and China by overcoming certain obstacles. Finally, it may be concluded that India will adopt all the necessary changes effortlessly in order to carry out international trade while maintaining a good standard of products and services.


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D’Aveni, R. A. (2010). The age of temporary advantage. . Strategic management journal, 31(13), , 1371-1385.

Eisenhardt, K. M. (2000). Dynamic capabilities: what are they?. . Strategic management journal, 21(1011), , 1105-1121.

Harreld, J. B. (2007). Dynamic capabilities at IBM: Driving strategy into action. . California management review, 49(4), , 21-43.

Hassan, Y. &. (2019). India–an untapped market for halal products. Journal of Islamic Marketing. , 01-20.

Hu, H. W. (2019). State capitalism and performance persistence of business group-affiliated firms: A comparative study of China and India. Journal of International Business Studies, 50(2), , 193-222.

IndianEmbassy. (2021, April 27). Indian Embassy in China. Retrieved April 27, 2021 from Indian Embassy in China: https://www.eoibeijing.gov.in/economic-and-trade-relation.php

Maguire, S. &. (2006). The emergence of new global institutions: A discursive perspective. Organization studies, 27(1), , 7-29.

Svensson, G. (2001). “Glocalization” of business activities: a “glocal strategy” approach. Management decision. “Glocalization” of business activities: a “glocal strategy” approach. Management decision. , 01-10.

WorldBank. (2021, April 27). World Bank. Retrieved April 27, 2021 from World Bank: https://www.worldbank.org/en/country/india/overview

WTO. (2021, april 27). WTO. Retrieved April 27, 2021 from WTO: https://www.wto.org/english/tratop_e/tpr_e/india.doc

Yin, X. &. (2008). Industry determinants of the “merger versus alliance” decision. . Academy of Management Review, 33(2),


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