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INTERNATIONAL BUSINESS
ON
HOW TO TACKEL RECESSION
Steps by Govt.
Make currency for export oriented:-
Depreciate the value of the Indian rupees against the
world’s major currencies to make Indian export cheaper for
them.
Increase in tax sops for exporters
Increase in export incentive programs like draw back duty.
Easy Availability of Fund:-
Govt. should ensure the eas y availability of fund for
exporters at lowest cost, which is in India the cost of
acquiring fund, is ver y high.
Provide Infrastructure Facility:-
Govt. should provide good infrastructure facility to the
exporter like logistic & transport facility or if possible,
Govt. could provide these facilities free of cost to boost
export.
Create Environm ent for R & D and Innovation:-
Govt. should create environment in such a manner that can
boost to R&D and Innovation work in India, so can it can
boost the demand for Indian product especially
technological product which is right now in ver y low level.
Encourage and give subsidies to exporters to participate in world
trade fairs like textile fair in Germ any.
Market of Indian product:-
Govt. should boost the marketing campaign overseas for
Indian product and services. Indian marketing campaign
should focus on quality product and services. Marketing
should in such a way that overseas importer always see
Indian product is always quality wise good.
Steps by exporters
Exporter should come with a Joint Business:-
Indian exporters who mostly are small and medium level
exporters (especially in textile, handicraft & leather industry)
could come together to joint hand to create value chain. It
helps them:
It will make possible for them to invest on
marketing which impossible individually.
It will make viable to them invest in expansion of
their operation capacity through which they can
produce goods in bulk and able to reduce per unit
cost
Focus on Emerging Econom ies:-
Make focus on world’s emerging countries like BRIC
countries, European nation and West African countries
because they have purchasing power. In West Africa, goods
at departmental stores are sold at the rate 5 times than
Indian price and Indian goods are not exported to several
countries in West Africa. It is an excellent opportunity for
our exporters.
Focus to Reducing Operating Cost: -
Exporter should focus on develop their service s and
products in such a way that their service help to reduce the
operation cost. So importers can use our service to bring
down their product cheaper and people always concerned
with cheaper good in recession time.
Exporter can focus on domestically demand and emerging
econom ies that can use services in major way.