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Contents
Internal factors...................................................................................................................8
Conclusion................................................................................................................................13
References................................................................................................................................14
This paper is based on ZEUS consultant which is considering expanding its business
operations in order to increase their overall profitability and attract new clients. For this
purpose, a proposal is prepared in which money and capital markets and its impact on interest
rates and exchange rates have been analysed in emerging market. In order to choose the
emerging market, the capital market of India has been selected. The overall internal analysis
of Indian Capital Market has been conducted and a conclusion is drawn in which the overall
opinion is proposed.
All the capital sectors in the world are based on the individual capital market situated
in each nation. The capital markets of each nation situated in Asia together form the capital
market of Asia, likewise, all the capital markets of the nations of the world together develop
the international capital market. The major operations which are dealt by the capital markets
are trading of capital bonds or stock, commodities (food grains or valuable metal), and other
valuable and exchangeable items at lesser transaction expense and market efficient prices.
market operates as major instruments for enhancing the liquidity (Gros and Lannoo, 2005).
1. Commodity markets
3. Money Market
5. Insurance Markets
because it assists the organizations to increase the capital in the market, facilitate the
exposure transfer in the markets of derivatives, and it assist the global trade in currency sector
to grow. The internal stock markets form a significant part of an intentional capital market
The allocation of capital function in the domestic economy means to provide the
guidance of flow direction thus realizing the rational function of allocation. There are
powerful optional, evaluate, and supervisory mechanism in the domestic capital market and
Thereby, it can increase the flow of capital to the highest sectors of the domestic
Market which provides greater benefits, and reflect the optimization of resources allocation
function. The last function in the domestic capital market is the right of property, which
means it restricts the property rights of investors’ and work function as intermediary trading
of property rights. The right of property function is determined as the capital market function,
in which it contributes a major role in the mechanism of recognition of property for the
providing the accommodation to the enterprises funds, increasing the information of real-
estate trade rights and offering agent services the property right (Eliot, 2016).
economy and a crucial substitute source of strategic finance which is provided by the
domestic capital market for strategic productive investments. The domestic capital market
contributes equity capital and infrastructure capital to enhance the benefits of socio-culture,
which includes energy, roads, public transport, and telecommunication etc. more
opportunities for investment are provided the domestic capital market that promotes
individuals saving their resourcing for investing, the investment ratios and domestic savings
are enhanced that is crucial for the purpose of instant industrialization. The most crucial
component which capital market proposed is the greater opportunity for the company to trade
their capital assets such as shares which can enhance both their social benefit and their own
The domestic capital market enhances the capital allocation efficiency by assuring
that only those projects which are determined as successful should be selected. These projects
will enhance the effectiveness of local institutions and optimize the ability of local industries
integration. The result will be enhancing in local productivity which will distribute into the
advancement in exports and enable the country to optimize and develop economically.
International Capital Market designates reliable operations for every customer’s needs (Erjie,
2015).
Through capital allocation from the customer’s capital allocation base, International
Capital Market improve their performance by removing useless capital allocation stage of the
chain level, multiplying the capital allocation flow and sharing capital allocation with clients
mutually. As proposed by Loo et al. (2013), successful business relationships are the most
On the other hand, the expansion of mass customization as well as the personalized
service reveals the emerging tendency in business. Hence, this expansion impacts the
management relationship with the customers within the International Capital Market (Hirst
customers and the rest of stakeholders are required for successful enforcement of
enables an organization to separate its products from competitors and at the same time
The capital to share capital allocation in a market assumes two forms: quantity and
quality. The two aspects are important in most of International Capital Market practices.
The quantity of capital allocation refers to the degrees which are important to the
information that is communicated from one supply partner to the other. In such a business
operation, information flows strategically to the concerned parties which include logistics
This analysis reveals that the success of a logical supply of goods and services in a
company is incurred due to the management of the up-to-date capital allocation of a market at
every point within the Capital Allocation in Capital Market. By assuming that such capital
allocation is ever available in the company’s capital allocation bases, the organization stands
a better position when it comes to competition with other International Capital Market.
Malling (1998) also reveals that information sharing among the partners reflect
critical reporting information. Indeed, sharing information can bring customers and suppliers
including quality and cost of goods and services. The quality of information is based on its
practices. This behaviour helps to minimize the supply and demand uncertainty in the
company’s main operations. Acquiring the best management outcomes for the Capital
Allocation in Capital Market demands that the information shared must be correct (Mensah,
2000).
communications were demonstrated within and outside the organization and are based on the
block that strengthens the relationship between government and capital institutions. Velcu
(2005) also reveals that good partnership in an organization helps stakeholders to act as one
entity since everybody appreciates the needs of end customers, therefore acting promptly. The
empirical findings by Velcu (2005) indicate that simplified material flow such as streamlining
the smooth execution of information within the Capital Allocation in Capital Market is most
important for the efficacy of the Capital Allocation in Capital Market (Baker, 2012).
In the recent past, India has undergone rapid changes that have come to be known as
the major economy of the Central Asia initiative. Majority of the country have capitalized
upon the fast-paced nature of the globalized fiscal transactions and are slowly gaining market
entry in the foreign investment market. However, not all of these countries have succeeded;
some like Bangladesh have fallen victims to such speculations. India continues to seek their
footage on the international capital market stage as they are striving to come up with
knowledge-based major economies mainly depended on their capital market. The current
established major and economic reforms that are currently underway in the Indian Capital
Market have tried to enhance the local and international Indian politics. This, in turn, has
much helped in increasing the India region's bargaining power (Chan, 2006).
Several changes in the have occurred both, locally in internationally that particularly in the
on-going global economic crisis. In the recent past, entire mutual arrangements have dictated
the means through which India was forming their labour relations and capital market
economies in the past, but that is not the case currently. Other factors that in the past have
shaped the Indian politics include the modern banking initiatives, the sovereign wealth funds
Internal factors
The year 2011 marked the turning around of the Indian economy. At large, the Indian
economy is characterized by three main sets of advancements; the initial factor shows that
India is actively engaged in rapid economic growths that are fostering massive development,
thus giving its economy a harp growth (Usselman, 2002). This provides the much-anticipated
funds for the development of the country's infrastructure and purchase of military equipment
that has helped in maintaining the major stability that has been wanting in these areas. The
herculean growth is another factor that has dramatically shaped the major situation of the
India, globalization, and integration of the Indian economy into the global economy has
helped in the stabilization of more successful than others except for Bangladesh (Chan,
2006).
The rate at which the dynamic of the Indian economy is changing requires a concise
comprehension of the current major situation in this region, the external and internal affecting
influencing and affecting the area as well as the implications of the present economic and
security trends and trade policies. Majority of India have both the internal and external
dimensions. The domestic include its ethnic divisions and the ideological concepts. Another
internal limiting factor that has played a significant role in defining the legislative history of
India is the issue of who is the leader of the Democratic Party. Over an extended period, there
Arab leaders have been overzealous in their desires to be acknowledged as the official leaders
of the entire Indian region and the Muslim community. This factor has its branches in the
tribal traditions of the Indian region, thus considered an internal threat to the major viability
in the Indian region. Territorial boundaries among member states are another critical internal
India positioned as nineteenth in the category of highest capita GDP on the globe in
investment effort, it positions ninety-two out of ninety-eight countries. The nation uses just
40% of its investment capacity (Usselman, 2002). Studies embraced over the most recent
quarter that the global monetary fund has discovered genuine lacks of both an auxiliary and
managerial nature in India’s present earning framework. Fundamentally, the framework has a
narrowed tax base that is dependent on traditions obligations on imports and a couple of other
taxes and expenses on a global exchange, which represent well more than thirty-3% of
Because of various concessions, the investment system viably catches just a little part
of the general budget. Also, the framework basically covers products to the virtual prohibition
of administrations, with the last account to 60% to 70% of family unit consumptions. On the
other hand, the framework yields moderately little earnings with respect to the span of the
capital institutions. It likewise creates earning streams that tend to develop more gradually
than the capital institutions. This is because the utilization of products tends to fall as an offer
Wood, 1984).
been categorized into five distinct origins. The capital market operations decreases the Cost,
part. They have additionally contended that expansion with an aim to get proficiency and
impressions, whereas concerns about security have been expanded to a more prominent
The essential purpose of this point is client character and it is unknown at these new
access focus. The secrecy is in charge of expanding frauds and deceitful which is the real
security concern. Novell gives system and equipment of administration framework which
prompt expense of consistency, administrative and consistence savagery, and reputation risk
capacity of magnificence. Acquisition and Merger are the emergency circumstances factors
which impact the Barter capital institution area through recouping misfortunes for three
months and are normally taken from Barter Capital Market operations technology’s trends as
Novell has built up a framework which is cautious towards operational perfection and
component of Barter capital institution. In the greater part of nations that can be named
progress capital institutions, international capital manages an expanding offer of the Capital
productivity of international possessed and local claimed capital institutions. It has been
Capital market trade policies, for example, the stochastic boondocks approach, utilize
econometric apparatuses to appraise the proficiency. Outskirts have been utilized for the
evaluation as it gives area to arbitrary blunders. Various factors utilized as a part of Indian
personnel and premium costs, the price of work, investment origins, and so forth. While
considering the cost productivity, international possession has affected emphatically on the
capital institutions of nations with change economies. The explanation for it is that
international capital institutions have better know how of the functioning and better
governance of corporate transactions. This analysis has left an area for additional contemplate
Market operations and impacts effectiveness (Sarkar, 2007). However, an evaluation has been
led demonstrating bigger yet inefficient capital institutions of India. Arrangement producers
ought to guarantee that contestants have a fantastic administration and will exchange
innovation and aptitudes. This finding is predictable with a passage and develops principles
while considering exchange a restraining format and further determines rents of capital
The key finding from the evaluation of India is that absence of rivalry has negatively
influenced effective and becomes helpless (Chhaochharia, 2008). Another unordinary thing
can be inferred that outside passage basically does not make advertisers more aggressive or
effective. The market just ends up plainly aggressive when it is now thought with nearby or
administration input cost, then Barter capital institution is diminished. This issue precisely
Conceivable clarifications for the contrasting productivity scores for the majors and
rebuilding, diverse client bases, and the impacts of the globalization of services associated
with currency transactions (Pathak, 2010). This evaluation additionally inferred that
productivity of real capital institutions is expanding. Their profitability has likewise expanded
diminishing, and this will negatively impact on their benefits provided to the stakeholders.
efficiency in Indian capital institutions. This pattern can be utilized as a part of an evaluation
to check the unmistakable components and their impacts on India capital segment (Viney,
2011).
through the boom of the Internet as it has a huge influence on individual administration
(Patrick and Tachi, 1986). Hence, it spares benefit conveyance costs and enhances client
can expands the levels of self-benefit harm client connections. In this way, Internet or Virtual
Capital Market operations services involve incentives to the viability and profitability of
exceptionally wider term and taking care of all factors will make it more complex. In this
(Moore, 2012).
Conclusion
From the above analysis, for the purpose of expansion, India will result in a feasible
country which will enhance the business operations of ZEUS Consultant and help the
company in getting new clients. Furthermore, by launching the business operations in India,
ZEUS Consultant will be able to generate the highest return on investment. It can be
concluded that according to the latest review conducted by the famous United States Capital
Company, India is able to maintain its growth above eight percent during the period of 2020.
It is also estimated that India will surpass superpowers in the near future.
The labour market policy in India will be gradually deregulated with the span of time
and bring about significant changes in the domain of training and education. Therefore, as an
intern, it is advisable for the company to invest in India to attain a higher return on the
investment.
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