AMP Energy, an energy drink brand produced and owned by PepsiCo, has acquired international recognition as one of the best energy drinks, being ranked the fourth-best in the United States. Being the second-most populous country in the world, India poses a huge market size and potential to become a global force in terms of business. The decision to introduce AMP energy drinks in this market largely depends on the region analysis conducted on India’s economic potential.
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Regional alliance and economic integration
- Regional economic integration in Asia is not that developed as such compared to North America and West Europe, it is confined to east Asia. India is a low-income country, in the same ranks as China, Sri Lanka, Indonesia, and Vietnam (Yahya, 2008, p. 6).
- The East-Asian integration, of which India is a part, is the strongest in trade. Transport and machinery and account for nearly half of the global manufacturing trade. India and East Asia are more integrated than any other part of the developing world. Agricultural and other industrial activities in Asia are greatly affected by policy issues and this country rarely produces merchandise meant for local consumption.
Physical environment and its effect on trade
- India is characterized by hills, rivers, plains, plateaus, beeches deltas, and deserts and therefore presents more leisure opportunities to foreigners (Jain, Agarwal, & Singh, 2007, p. 4). The Himalayan Range harbors numerous important states and so does West India. The Southern Peninsula is another part that harbors unique natural features such as the Deccan plateau and other terrains that are well-known among vacationers. This physical environment improves business through tourism. As tourists visit the country to observe these features, they in turn become customers.
- On the other hand, this unique physical environment can affect the business negatively (Hill, 2009); the vast Thar Desert and the plateaus could greatly affect sales.
- Having adapted from the United Kingdom, India’s form of democracy, often known as “first-past-the-post, winner-takes-all”, has made the country experience a period of relative political stability.
- India only experienced political instability in the 1999 general elections; political instability in India cannot affect trade as such since the political divide is not of policy, but personalities.
India is among the world’s fastest-growing economies. It is only china that has a higher economic growth rate than it. The primary sectors in India’s economy are agriculture, fishing, forestry, mining, and so forth. The economy has been growing steadily by 6% since 1990 (Yahya, 2008, p. 222). This can be attributed to the vast pool of educated and skilled citizens.
Favorable economic conditions, supported by the steady economic growth, availability of labor, availability of market, availability of raw materials, and government stability all work to facilitate the venture (Bosloper, Castalleno, England, & Galdi, 2006).
Financing options available
Financing options are available from long-term to short-term loans from the local banks, mortgage.
Social, health, and environmental condition
Three major towns in India, that is Delhi, Calcutta, and Mumbai, are the three most polluted cities in the world. The burning of substances like biomass, wood, and coal, has been a major factor contributing to pollution. Due to this high rate of pollution, several illnesses have been recorded in India’s major three cities.
India has suffered violence from extremist attacks. These were based on separatists and secessionist movements, and other ideological disagreements. A major territorial dispute was over the Indian-controlled Kashmir.
Bosloper, M. J., Castalleno, A., England, R. M., & Galdi, D. (2006). Economic conditions and how it affects trade between the U.S. and India. International Business & Economics Research Journal (IBER), 5(3), 55-61.
Hill, C. W. (2009). International business: Competing in the global marketplace (7th ed.). Boston, MA: McGraw-Hill.
Jain, S. Agarwal, P. Singh, V. (2007). Physical Environment of India. Hydrology and Water Resources of India, 57(1), 3-62.
Yahya, F. (2008). Economic cooperation between Singapore and India: An alliance in the making. San Francisco, CA: John Wiley and Sons.