9.New business opportunities
Many companies have entered in to business abroad, seeing unlimited opportunities. Nationalforeign trade policy emphasizes focus markets. Enormous amount of growth potential isuntapped in Latin America, Sub-Saharan Africa, CIS countries and China.
10.Emergence of SEZ’S, EOU’S, AEZ
Current approvals of Special economic zones, Agrizones and Technology parks by Ministry of Commerce & Industry give new dimensions to international business. The companies setting upunits in SEZ’s enjoy innumerable benefits and competitiveness.
From a Government Angle
1.Earning valuable foreign exchange
Foreign exchange earning is necessary to balance the payments for imports. India imports crudeoil, defense equipments, essential raw materials and medical equipments for which the paymentshave to be made in foreign exchange. If the exports are high and imports are low it indicates asurplus balance of payment. On the other hand if imports are high and exports are low itindicates an adverse balance of payment, which all economies would want to avoid. A vastmajority of the nations in the world are facing adverse balance of payment.
2.Interdependency of nations
From time immemorial, nations have depended on each other. Even during the era of Indusvalley civilization, Egypt and the Indus Valley depended on each other for various items. Today,India depends on the Gulf regions for crude oil and in turn the Gulf region depends on India for tea, rice etc. Developed countries depend on developing countries for primary goods, whereasdeveloping countries depend on developed countries for value added finished products. Nosingle country is endowed with all the resources to survive on her own.
3.Trade theories and their impact
The theories of absolute advantage, comparative advantage and competitive advantage, whichhave been propounded by classical economists, indicate that a few nations have certainadvantages of resources. The resources may be in the form of labour or infrastructure or technology or even a proactive policy of the government. Such theories are remainingfoundations till today, for international business practices with few changes and trends.