Type of paper: Case Study
How would you tradeoff the degree of country risk versus the business environment ratings, taking into consideration the market size as expressed by the PDI in 2015?
When looking at the risk factors for doing business in India, I believe that it is safe to say that it would not be an endeavor that comes without dangers, especially given the larger income disparity found in the country. However, given the personal disposable income levels found on average in the Indian population, especially in the year 2015, the nearly 40% increase in the next five years in the market size of the Indian people makes it worth weathering the moderate risks involved.
Compared to the PDI in 2015, entering into business in India in 2011 is not as good a proposition, due to the substantial drop in available income to take advantage of. However, all the same, even considering the risks, it is extremely easy to start a business there, and the tax rates are still low enough as to make maintaining a business there affordable, even with only moderate profit margins.
How would you prioritize the BRIC countries in terms of developing a global business strategy?
I believe that India is on fairly equal footing with Russia, Brazil and China, though it has substantial advantages in having comparatively low public debt, high usage of technology, and high population growth rate, despite not having as high a GDP as the other three BRIC countries. If I were to develop a global business strategy, I would attempt to get a strong foothold into India first, due to the incredible growth their PDI will experience in the next few years, while still keeping moderate tabs on the progress of China, Brazil, and Russia, in case the wind changes directions.