What are challenges likely to be faced by the businesses in the emerging economy internationalization at the first phase
Answers
What are the challenges likely to be encountered by businesses in emerging economies internationalizing at a very fast rate?
From India perspective:
Infrastructure: Being one of the fastest growing economies in the world, India is witnessing a rise in demand from consumers in almost all the sectors. The growth has highlighted the need for better infrastructure. However, we are still struggling to develop proper roads and ports. On the infrastructure front, there is a huge shortfall in all the three areas—road, rail and port. This acts as a huge opportunity for establishing several new public/private partnership projects.
Policies & regulations: Though Indian Government in encouraging FDI and trying to pull many Indian small players, the polices still need improvement. To support Indian companies, the Indian government needs to set up more industry friendly policies.
Availability of land: If a company wants to start a manufacturing faciity, getting adequate and proper location becomes an neverending ordeal for example Posco in Orissa, TATA in W Bengal.
Right talent: Though India has no dearth of skilled manpower, finding the right talent is daunting task.
High competition: Since India in one of the fastest growing market, it has attracted companies from all over world. At the same time some Indian companies have become global and competing with global giants. This high competition is one of the biggest challenge a company can face while doing business in India.
Falling Rupee: Continuous downfall of Rupee against major currencies also poses as a challenge in the present day, as the manufacturing & operation cost goes up.
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