(Mt) – SEU Starbucks’ Expansion into The Indian Market Paper

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View attached explanation and answer. Let me know if you have any questions.1Starbucks’ Expansion into The Indian MarketStudent’s NameInstitution AffiliationCourseInstructorDue Date2Starbucks’ Expansion into The Indian MarketGlobalization has increased international trade in the current days. Multinationalcorporations have benefited greatly from globalization, and there are various areas where theycan invest. There are various entry strategies that are used by firms to enter into countries andestablish joint firms. Multinational corporations should consider regulations and restrictions putinto place to control foreign investors. Firms should look for economies that are easy to enter butshould be guided with strategic plans which should be executed. Economies with less restrictionsare recommended because it will be easy for firms to enter into collaborations with local firms(Pandey et al., 2021). International brands are recognized in different areas, and when they needto start new firms, they should use the right entry strategy because different regions havedifferent regulations. Every economy has factors that determine the activities of multinationalcorporations, and entering the market through joint ventures is one of the best decisions. Jointventures allow different partners to control the business, and in this paper, I will discussStarbucks’ joint venture with Tata Group in India (Fischer & Roy, 2019).There are various factors that inspired Starbucks to venture into India and expand itsoperations from the United States of America. One of the reasons that inspired Starbucks toventure into India was policy reforms and economic liberalization. Initially, there wereregulations which were limiting the operations of foreign companies, and it was not easy forStarbucks to start operations. Economic growth and the need for foreign investment led to therelaxation of regulations restricting foreign companies (Gupta et al., 2018). In 2006 whenStarbucks announced its interest in India, the government had relaxed regulations so that singlebrand retails could maintain a 51% majority hold over their investment. In 2012, India fullyopened its market to foreign investors allowing fully investment of foreign companies. There3were tariffs and other restrictions which hindered the entry of global companies until they wererelaxed in 2006. Starbucks was inspired to venture into India by the profitability potential of thenation (Fischer & Roy, 2019). India was good for investment because it guaranteed high returnsdue to the nature of its economy. The national income of India had increased by around 7%during the first decade of the twenty-first century hence the rising rate of personal wealth.Additionally, the rising rate of personal wealth was mixed with an inc…

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