Task 2
Introduction
For this report I have researched how the environment and culture of India affects
businesses operating internationally and specifically Nike. There is over 1.2 billion people
living in India and they are still a developing country. Despite still developing and having
a lot of poverty, India is still viewed as a strong country and have a lot of trade that
involves them as a country. Nike is a sportswear shop that has been operating since
1964 and their average profit year on year is $30 billion.
Political
India’s government is classed as Federal Republic. This means that the government is
made up of smaller areas like states, where the main government gives up certain power
to individual areas for self-government purposes. The citizens of a Government such as
this elect their own representatives which lead them. This affects international trading
policies as different states may have different legislations to follow and therefore they
cannot trade specific products. In India they do not have services such as the NHS like
the United Kingdom. The risk of corruption is high in India and this impacts the overall
health and wellbeing of the people that live there. By not having people who have access
to free healthcare, this can impact how long they live their life and what they are able to
spend their money on. For example, someone who is extremely sick would not want to
invest money into luxury items such as clothing and jewellery. This type of challenge can
affect Nike as they would have to ensure that where they business is set up is
appropriate for the market they are targeting, and that their products are of reasonable
price.
Economy
India is popular for selling goods to other countries such as the U.K, Spain and the U.S.A
in bulk cheaply. By being able to sell produce for cheaper than other countries can, it can
work out to be a positive for companies in India as this means that they can gain a larger
profit as they are selling more overseas.
Considering how easily India’s government is to persuade and how quickly it can become
corrupt, other countries may use this to their advantage by accepting goods for cheaper
as they can secure a better deal with a country such as India.
Having a bad economy in India can massively affect India as it means that customers will
not want to buy Nike’s products as it is seen as more of a luxury item, and during a
recession people will not have as much disposable income. Another major issue for a
Introduction
For this report I have researched how the environment and culture of India affects
businesses operating internationally and specifically Nike. There is over 1.2 billion people
living in India and they are still a developing country. Despite still developing and having
a lot of poverty, India is still viewed as a strong country and have a lot of trade that
involves them as a country. Nike is a sportswear shop that has been operating since
1964 and their average profit year on year is $30 billion.
Political
India’s government is classed as Federal Republic. This means that the government is
made up of smaller areas like states, where the main government gives up certain power
to individual areas for self-government purposes. The citizens of a Government such as
this elect their own representatives which lead them. This affects international trading
policies as different states may have different legislations to follow and therefore they
cannot trade specific products. In India they do not have services such as the NHS like
the United Kingdom. The risk of corruption is high in India and this impacts the overall
health and wellbeing of the people that live there. By not having people who have access
to free healthcare, this can impact how long they live their life and what they are able to
spend their money on. For example, someone who is extremely sick would not want to
invest money into luxury items such as clothing and jewellery. This type of challenge can
affect Nike as they would have to ensure that where they business is set up is
appropriate for the market they are targeting, and that their products are of reasonable
price.
Economy
India is popular for selling goods to other countries such as the U.K, Spain and the U.S.A
in bulk cheaply. By being able to sell produce for cheaper than other countries can, it can
work out to be a positive for companies in India as this means that they can gain a larger
profit as they are selling more overseas.
Considering how easily India’s government is to persuade and how quickly it can become
corrupt, other countries may use this to their advantage by accepting goods for cheaper
as they can secure a better deal with a country such as India.
Having a bad economy in India can massively affect India as it means that customers will
not want to buy Nike’s products as it is seen as more of a luxury item, and during a
recession people will not have as much disposable income. Another major issue for a
