Doing Business Abroad
Doing business abroad and growing internationally is an essential part of a company's business expansion policy. It is governed by a company's aim to diversify its commercial activities across national frontiers and increase its competitiveness. Hence, planning of manufacturing facilities, logistical systems, financial flows and marketing policies in such corporations are done by taking into consideration the entire world as a single market.
Any business transaction that involves persons or firms of more than one country is described as overseas business. In India economic reforms opened up important avenues for promoting global business by Indian entrepreneurs. The first policy governing overseas direct investment was in the form of guidelines. These guidelines defined the extent of participation of Indian companies in projects abroad and were subsequently revised and liberalized from time to time. They aim at providing transparency in the framework of overseas investments.