Opportunity and Threat

Topics: Economics, International trade, Purchasing power parity Pages: 4 (1180 words) Published: June 21, 2011
India International Environment Analysis Report
1.0 Environmental Analysis
1.1 Trade Agreement
India: Malaysia’ largest trading partner
Malaysia signed a free trade agreement (FTA) between India for strengthen economic ties purpose and double bilateral trade up to $15billion. This agreement is to complement existing free trade deal between India and Association of South-East-Asian-Nations (ASEAN). Under this agreement, two countries are fully allowing foreign shareholding over 80 sectors including automotive and manufacture industry. Moreover, Comprehensive Economic Cooperation Agreement (CECA) marks on new era bilateral ties that serve to encourage free movement of goods and services enhance their investment flows between India and Malaysia. Forge stronger economic partnership and linkages

In trade agreement that had inked, both countries desire/seek to forge stronger economic partnership, a deepen economic linkages. Since South-Asia economy was shining on Malaysia, India is a potential market to invest due to its wide regions. These create chances for PERODUA to trade with India domestic companies (as a good future orientated) and also importance in interpersonal relationships market. CECA will continuous usher in new era for further economic cooperation opportunities. Market access commitments which are under CECA had set free ASEAN-India Trade-in Agreement in order to have more liberal tariff concessions. Other than that, India’ cooperation investment could be strengthen through improvement on rules and regulations, and provide protection on it. Therefore, endorsement of this agreement is highly perceived as a trading investment opportunity.

1.2 Economic Factors
Economic liberalization
India country started to develop toward open-market economy. The economy liberalization has moderate India country's economy growth (more than 7%), increase in competitiveness and relaxation in restrictions. It also helps India in automobile market sector, display...
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