CASE STUDY II

Subject: Business Environment

MBA SY Sem III

PANKAJ KAPSE

Roll No: 18

MBA SY Sem III

SRTMUN

Sub Centre LATUR

 Obama to push for U.S. exports in India

Barack Obama will visit India in early November for the first time in his
presidency. Obama and his Indian counterpart Prime Minister
Manmohan Singh will undoubtedly discuss geopolitical subjects,
including issues with Pakistan.

U.S. President Barack Obama shakes hands with India's Prime Minister
Singh
However, Obama is also likely to push for U.S. commercial interests.
 

India is a large, fast-growing economy with an expanding middle class

and U.S. exporters want to tap into this lucrative market. 

 
Obama has already announced his desire to double exports in five years.
The U.S. also sees exports as a solution to its persistently high
unemployment rate and stalled economic recovery. Therefore, it has
every incentive to push exports in India. 
 
Obama will "pitch U.S. goods and services," said Michael Yoshikami,
chief investment strategist at YCMNET Advisors, a money management
firm in Walnut Creek, Calif.
 

"The U.S. is looking to be not merely a consumer economy, but to

remake itself, similar to Germany, to [become] an exporter economy as
well as a consumer economy," he said.

 
India also has relatively cheap but skilled labor, something else U.S.
corporations want. 
 
Richard Kang, chief investment officer of Emerging Global Advisors,
said it's possible the U.S. will push for stronger ties with India on this
front in order to gain an edge in its relationship with China, particularly
on the yuan undervaluation issue.  Fostering this relationship with India
could reduce U.S. dependence on Chinese labor and manufactured
products.

 
In return, the U.S. could share its commercial technology with India,
which is something India really wants.  It can even help Indian
companies get access to U.S. capital markets, said Kang.
 

However, Yoshikami said it is unlikely the U.S. will give up any

technology that has military uses because of the complicated geopolitical
tensions in that region.