Shahab Assignment BL 1

This document is an assignment submission for an international business class. It contains the student's responses to two questions. For the first question, the student summarizes that India had a mixed economy from 1947-1990, is transitioning to a more market-oriented system, but faces barriers like lack of infrastructure and bureaucratic inefficiency. For the second question, the student analyzes Pakistan's political system from 1948-2008 as having aspects of both collectivism and periods of democracy and authoritarian rule. The student suggests Pakistan needs to strengthen institutions, political stability, and improve its business climate to attract more foreign investment and have a political economy more suitable for international business.

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Shahab Assignment BL 1

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Muhammad Shahab

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International Business

Assignment No # 01

Submitted By: Muhammad Shahab

Roll No.: 2201115
Subject: International Business
Submitted to: Sir Tayyab Ali
Class: BBA -7- C (Morning)
Submission Date: March 26, 2023

Faculty Of Management Sciences

National University of Modern Languages.
Q1. What kind of economic system did India operate under during 1947 to
1990? What kind of system is it moving toward today? What are the
impediments to completing this transformation?
India had a mixed economy from 1947 to 1990, with the government exerting considerable
influence over and regulation of economic activity. The government provided subsidies and
directed investments in important industries like agribusiness, industry, and infrastructure. This
system was characterized by a blend of state-owned and private businesses.
India's economy has been shifting towards a more market-oriented one since the 1990s as a
result of the government's efforts to liberalize the market, lower trade and investment obstacles,
and support private business. Policies like liberalization, privatization, and globalization have all
been implemented in conjunction with this shift. However, a number of barriers have prevented
the transition to a market-oriented economy. One of the biggest barriers to the development of
the private sector has been the absence of essential infrastructure and services like transit,
electricity, and healthcare. Another issue has been bureaucratic inefficiency and graft, which
have dragged down change execution and deterred foreign investment.
Additionally, there have been worries about how economic liberalization will affect weaker
groups of the population, like farmers and workers, who might lack the means necessary to
thrive in a market-driven economy. Deliberations about the necessity of social safety nets and
focused government initiatives to ensure that the fruits of economic development are more
broadly distributed have resulted from this. Despite these obstacles, India has achieved
substantial economic success, and the world has taken notice of its efforts. In order to speed up
growth and development, the government of India, one of the world's main countries with the
fastest growth rates, continues to press for additional economic reforms and building spending.
Q2. Political systems can be assessed according to two dimensions: the degree
to which they emphasize collectivism as opposed to individualism, and the
degree to which they are democratic or totalitarian. Access the political
system of Pakistan from 1948-2008. What way forward is suggested in your
opinion for a better political economy that suits international business?
From 1948 to 2008, Pakistan's political structure was complicated and variable, with phases of
democratic and authoritarian control. There have been frequent coups and political instability as
the nation alternated between democracy and military control. Pakistan has historically tended
towards collectivist in the first measure of collectivism versus individualism. Strong family and
community structures, which frequently take priority over individual rights and liberties, are
indicative of this in the nation.
Pakistan has experienced both democracy and totalitarian governance at various points in its
history. Throughout its history, the nation has experienced a number of military coups, and
autocratic control has frequently been a hallmark of military governments. But there have also
been political times in Pakistan, including parliamentary democracy since 2008. Pakistan has
historically had difficulty luring foreign investment into its economy because of its unstable
political situation, subpar infrastructure, and flimsy institutions. Pakistan should concentrate on
bolstering its institutions and establishing a more stable political climate in order to improve its
political economy and make it more conducive to foreign business. This entails dealing with
problems like graft, enhancing the rule of law, and making investments in infrastructure.
Pakistan should also make efforts to improve the business climate by streamlining rules and
processes, offering tax breaks for foreign investment, and expanding access to credit. The public
and commercial sectors will need to work together on this, and businesses and foreign
organizations will need to lend their support.
Overall, addressing Pakistan's political and economic challenges will require ongoing efforts to
establish a political climate that is both stable and favorable to business.