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Describe and analyze - Essay Example

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India Globalization, liberalization and privatization are some of the new economic principles, which succeeded in rewriting the history of this world. Global wealth has started to shift from the less heavily populated American and European region to the more heavily populated Asian region because of globalization…
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Describe and analyze
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Download file to see previous pages Being the biggest democratic country and the second most heavily populated country in the world, India’s progress is watched with curiosity by scholars and economists. Many people believe that India may become another superpower in the world in near future itself. It should be noted that the recent recession has caused less problems to India’s economy even though it caused many problems in America and Europe. Prominent companies are targeting India as a manufacturing destination because of the availability of cheap labor in India. Distance is no more a problem for overseas companies in targeting India because of the development of internet related business strategies. Offshoring and outsourcing like new business principles and the development of internet related business technologies helped India immensely in changing its destiny from a poor country to a prosperous country. Neither technology nor the dimensions of distance are a problem for India as far as development is concerned. This paper analyses India’s dimensions of distance, institutions, industrial clusters, and diffusion of technology. “Distance between two countries can manifest itself along four basic dimensions: cultural, administrative, geographic, and economic” (Ghemawat, Distance Still, p.138). ...
For Indians, Pakistan is a different country culturally, politically and economically whereas China is a different country in terms of politics and culture. So these countries are not in good relations with India even though they are geographically close to India. On the other hand, geographically distant countries such as America and Europe are good trade partners of India. “Economists often rely on the so-called gravity theory of trade flows, which says there is a positive relationship between economic size and trade and a negative relationship between distance and trade” (Ghemawat, Distance Still, p.138). Traditional economic principles says that it is easy to increase global trade between countries of proximity. However, India is a country, which has trade relations with even distant countries. It should be noted that Europe and America are some of the distant regions from India; yet India has strong economic relationships with these countries. In fact, India is a prominent member country of the Group of 20 (G-20) developing nations, even though majority of the members of this group are from Europe and America. “The largest IT services markets are the most advanced economies, whose per capita incomes make them distant economically from India” (Ghemawat, The Cosmopolitan, p.95). For example, America and majority of the European countries are much more developed than India. These regions or countries are the largest IT services market in the world. The per capita income these countries are much higher than that of the Indians. However, it should not be forgotten that India is one of the largest service IT provider and the second largest country in terms ...Download file to see next pagesRead More
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