This paper will outline the background of the country of India to its present day. This will include a brief discussion on how the country has become an attractive location for businesses to establish a global footprint. In doing so, there are many aspects that must be considered when setting up a business of operations within India. Business security and what can be experienced when a business finally decides to take the step. This includes aspects of local governments, local culture, and employee pool, just to name a few. Then, there is the risk associated with doing business in India once the operation is established. This can include terrorism, government conflicts, and employee concerns. While there is a large list of security concerns for a business to consider before making this type of commitment, many can be avoided or at least minimized through proper planning. I will discuss solutions that can be implemented to reduce the amount of risk associated with the security adversity when establishing a global business within India.
Business Security and Globalization of Multinational Businesses Located in India Introduction
Businesses today have pushed their footprint of operation outside what is considered to be their home country. A business that is a multinational business will have operations in many other countries. The one country that the headquarters is located in is considered to be the home country. The countries that contain just an operational branch are known as host countries. In the host countries are where business security will become tested. Because of globalization a business has to develop a more involved security plan. This plan needs to consider all of the possible threats that the business may encounter while in the host country. The list of threats includes financial compliance issues related to the filing of the proper paperwork associated with doing business in a foreign country. There is the aspect of hiring skilled workers to perform the tasks at the business that is in the hosted country. The Foreign Corrupt Practices Act of 1977 is another aspect of doing business in a foreign country that should not be overlooked. To name a few more would be to consider industrial espionage, militant threats, and terrorism. Background
India is located in South Asia. It is officially known as the Republic of India. India is ranked seventh in geographical area and only second in population with over 1.2 billion people. India is bordered by the Indian Ocean to the south, the Bay of Bengal to the south east, and the Arabian Sea to the south west. The remaining bordered areas include, Pakistan to the west, Burma and Bangladesh to the east, and Bhutan, China, and Nepal to the north east. India has the Andaman and Nicbar Islands that share a maritime border with Thailand and Indonesia. India is comprised of 28 States and 7 union territories. All of the entities have elected legislatures and governments. They are both patterned after the Westminster model. The Union Territories have a more granular form of government. Their level of division upon subdivision goes all the way to the village level. India was a dark state until the start of the economic liberalization which took place through economic reforms that all started on July 24, 1991. This started with reform policies that opened India for internal trade and investment. Starting with polices that would cause deregulation, initiation of privatization, tax reforms, and inflation-controlling measures. These acts performed by the government took the country from an economic system based on socialism to one that was based on capitalism. This shift in the economic stance of India has fostered a great deal of prosperity, for example India has been able to achieve a high economic growth rate. The future of India is showing great promises. India is one of several emerging market economies in the world....