International Management

1.0 Introduction

1.1 Geography and demography

The current India populations are around 1.3 billion. In term of religion, there is 80 percent of Hindu however India also one of the country that have the world’s largest Muslim populations. India is an important country for south Asia. According to a research, the union of India is the seventh largest country in the world. It is because India occupies 73.2% of the south Asia and its connecting industrially developed countries of Europe in west and developing countries of East Asia (Fact about India, n.d.). The location advantage of India is that it can link with developed and developing countries which located in the East and the West. Thus, India can easily accessible to other parts of Asia, Africa, Europe and Americas (Fact about India, n.d.). Based on this research, we can know that India has a good location to do business.

1.2 Ethnic and religion

Besides, India has more ethnic and religious group than others countries in the world. There have more than 2000 castes, eight major religions, more than 15 languages which spoken in various dialect in 22 states and 9 union territories (Cultural Survival, n.d.).That means there have different official languages in different states in India. Therefore, communication will be one of the barrier or challenges for businessman to do business there by not knowing there language. For instance, it will be difficult for us to communicate with the local resident and different region government department.

1.3 Economy

The economy of India has been sustaining a growth rate about 7 percent. India is a significant force in world trade, but their economic growth still remains below potential. For the open market in India, the average tariff rate of India is 7 percent and this will attract much foreign investment into India market. However, many non-tariff barriers impede the free flow of goods and services and India government implement policies favor domestic firms in order to capped foreign investment in many sector of the India economy (Economic Freedom, 2016). Therefore, foreign investment is hardly to enter in India market.

2.0 Changes in India

2.1 Power distance in India:

Figure 1.1

The index of India’s power distance is 77 and it indicates that India has a high power distance culture which the community accept distribution unequally and they appreciate for hierarchy and top-down structure which happened in their country. In India’s liberal political foundations, they are remaining rigorously hierarchical and unequal. For instance, there are some elites which come from lower-caste group, they unable to enjoy social equal when they