Government Intervention And Regional Economic Integration

Government Intervention and Regional Economic Integration Name Institutional affiliation Government Intervention and Regional Economic Integration Introduction Businesses enter into the international market to expand the demand for their products beyond the home market, to avoid competition, to move closer to the source of raw materials for their products and to access technology. India is considered an emerging market alongside China, Russia and Brazil due to its fast-growing economy. The country is also attractive for foreign business for its over 1 billion population and a large skilled. India is therefore referred to as the global service hub, in contrast to China which is the universal factory. India invites foreign investment into sectors such as petrochemical, pharmacy, defence and agriculture among others. However, for a long time, the government has blocked large multinational retailers such as Walmart, Tesco and Carrefour from the Indian market. The government uses cumbersome procedures, legal requirements, regulation and taxation to encourage or discourage foreign direct investment. Government intervention in India The role of the government in business in India and many developing countries include meeting the demand for goods, services and employment of its citizens, to create and enforce business regulations and own government enterprises. Some products