Factors That Have Enabled India to Become an Emerging Economy Essay

Factors That Have Enabled India to Become an Emerging Economy - Essay Example This research will begin with the statement that the increasing competition and changes in the global marketplace have resulted in forcing the organizations to come up with new and innovative methods for increasing the market growth and share. Increasing globalization and internationalization have resulted in providing these organizations with an option to expand into international markets. On the other hand, different countries and international markets are trying to attract the organizations and foreign investment with the help of favorable policies and factors in order to improve the overall economic condition of the country. India is eyeing to become one of the powerful economies of the world, as it can be seen from recent past that Indian economy is showing rapid growth and is amongst the top growing economies of the world at present. India is the tenth largest economy in terms of nominal GDP and is amongst the top three (third largest) economy with respect to purchasing power p arity (PPP). The main reason behind this growth comes from various alterations and transformations made in economic, social and political practices of the country or in simple words by adopting reforms. This has lead towards creating a situation that country which was a few decades ago under the list of under developing countries is amongst the top powerful economies of the world. Meanwhile at present according to the economic survey of 2011-2012, Indian GDP showed a positive growth and is amongst the top three economies of the world that have shown significant growth over a recent past in terms of GDP. However given below are some of the important factors that are playing important role in the growth of the Indian economy. India has been able to grow and improve its economy by attracting more and more international business and organizations. The country is striving hard to provide the international investors with feasible conditions in order to increase the Foreign Direct Investme nt in the country. The economic, political, social, and technological factors all have been shaped in such a manner that more and more international organizations are investing in the country. The economic, political, and technological factors of India are attractive for any method of internationalization including; export based, nonequity based, and equity-based methods for internalization.

Analyze Alternative Exchange Rate Regimes Essay Example | Topics and Well Written Essays - 500 words

Analyze Alternative Exchange Rate Regimes - Essay Example Flexible exchange rate constantly moves back and forth. Most of the country of the world keeps US dollars as a reserve currency against their own money. When we mean flexible exchange rate of a country’s currency, we denote its value with reference to US dollar. Change of international value of the dollar will affect the exchange rate of country’s currency against the dollar. There is no perfect model (Wray, 2011) to predict the movement of international value of US dollar. There is no perfect model that can predict exchange rate of a country’s currency against US Dollar. Flexible exchange rate has advantages; independent monitory policy, promotes economic development, promotes international trade, and increases international liquidity. Government operating with flexible exchange rate does not undertake responsibility of currency conversion. Government does not need to fear that it will run out of foreign currency reserves. In case of using flexible exchange rate monitory policy of the country is not limited or affected by the economic conditions of other country. Thus, it promotes economic development leading to full employment. Since, government does not control the exchange rate, restriction on international trade is removed which contributes to free moving of capital among countries. Flexible exchange rate removes the necessity of keeping foreign exchange reserves thus, increases international liquidity of the currency. In a fixed exchange rate system, the currency has a target rate based on other currency or basket of other currencies (Wray, 2011). This is how government is controlling value between two currencies. If the government let the currency float it can trigger domestic inflation. Government will be printing paper money, and its monitory policy will be affected, as well as the job market. When export and import elasticity is extremely low (Wray, 2011),