ANALYSIS OF INDIA 2
The Culture of India 2
The Political Environment of India 4
The Legal System of India 5
The Economy of India 6
ANALYSIS OF BANGLADESH 7
The Culture of Bangladesh 7
The Political Environment of Bangladesh 8
The Legal System of Bangladesh 9
Economy of Bangladesh 10
COMPARATIVE ANALYSIS AND FDI RECOMMENDATION 11
Comparative Analysis 11
PORTERS DIAMOND ANALYSIS 15
Information Technology Industry in India 15
Domestic and Global Demand 16
India’s IT Competitive Advantage and Endowments 17
Supporting and Related Industries 18
Firm Strategy, Structure, and Rivalry 19
WORK CITATION 26 INTRODUCTION
Southeast Asia has been attracting a lot of foreign direct investments as many countries within the region are experiencing significant annual growth rates in their economy. Recognizing that new foreign direct investors need assistance in determining where to invest in Southeast Asia, this report will focus on comparing the potential growth opportunities between India and Bangladesh by analyzing the culture, political and legal system, and economy of the two countries. Based on the analysis, a recommendation will be proposed that will decide which country is the better candidate for foreign direct investment (FDI). Furthermore, the report will utilize Terry Porter’s Diamond of national competitive advantage to suggest which industry to invest in. This report will provide foreign direct investors information that will help them make their investment choices.
ANALYSIS OF INDIA
Currently, India has a population of about 1.2 billion, which makes them the second most populated country globally. Over the years, India has become one of the valuable destinations for business, and has attracted many foreign direct investors into the country. Below is an analysis on India’s culture, political and judicial systems and economy. In order to determine the potential growth and attractiveness of India for investors, it is important to identify which aspects of the country will encourage or hinder the future growth of the country.
The Culture of India
India is the birthplace of many different religions and contains 15 languages, which create a diverse environment. Religion in this country is seen as an important role in the functioning of society and Hinduism, Islam, Buddhism, and Sikhism dominate it (World Business Culture, 2012). There are also many different spoken languages from different states. However, the most spoken language in India is Hindi, which is the primary tongue and national language of India. However, many business professionals in India are able to speak English, and most business transactions are generally done in English (World Business Culture, 2012). The only people who might have trouble interacting in English would be the older generations and those in rural areas with poor education.
People in India are very collectivistic, and tend to define themselves by the groups they are associated with, such as a certain religion. Family is viewed as a very important aspect in Indian culture, and individuals value their relatives with trust and respect. Therefore, whether it is direct blood relatives or extended family, Indians value their opinion, and care about their general well-being. Within the family structure, the father is considered the patriarch and the leader of the family. This sometimes relates to why leadership and managerial roles in Indian businesses are male-dominated.
India’s social structure is organized by a caste system, which is influenced by Hinduism. They have created a culture that establishes hierarchical relationships within the workplace, which has impacts on the management style of businesses. For example, it is expected that the boss or senior managers give explicit instructions and tasks to their subordinates (Kwintessential, 2012). As a result, most of the important strategic and management