International-Business-Dr-R-Chandran-E-book

4. Diplomatic relations
9
International Business- Dr. R. Chandran
Diplomacy and trade always go hand in hand. Many sovereign nations
send their diplomatic representatives to other countries with a motive
of promoting trade besides maintaining cordial relations. Indian
diplomats in Latin America have done a remarkable job of promoting
India’s business in the 1990’s. Indian embassies and high
commissions in all the countries around the world play a catalytic role
of promoting trade and investment.
5. Core competency of nations
Many countries are endowed with resources, which are produced at an
optimum level. Such countries can compete well anywhere in the
world. Rubber products from Malaysia, knitwear from India, rice from
Thailand and wool from Australia are a few illustrations. Competing
with a focused competency in any major resource or technology gives
core competency status. India’s core competency in IT is known
throughout the world.
6. Investment for infrastructure
Over the years all countries have invested huge amounts of money on
infrastructure by building airports, seaports, economic zones and
inland container terminals. If the trade activities do not increase, the
country cannot recover the amounts invested. Hence, the government
fixes targets for every infrastructure unit and time frame to achieve it.
Economies like Mauritius, Hong Kong, Singapore, Malta and Cyprus
invest in trade related infrastructure in order to elevate themselves to
be foreign trade oriented economies. Infrastructure and international
business are the two eyes of a growing economy.
7. National image
A new era has emerged from conquering countries by sword to
winning it by trade. A businessman gives priority to the image of the
country he belongs to. We come across products with labels such as
Only for Private Circulation