Editorial

Abstract

The world of international business is confronting new opportunities and challenges with evolving systems of internationalisation. In each issue of FOCUS, we attempt to bring to our readers topical research areas in international business which can be of interest to both academicians and policymakers. The first article in this issue analyses the possibility of a multipolar world in the 21<sup>st</sup> century, with a place for South Asia as a distinct unit. While there is immense potential for South Asia to emerge as a powerful unit in view of its demographics, diversity, dynamism and IT knowledge, the region faces a number of persisiting problems like poverty, population, corruption, poor quality of education, and weak democratic governance. Foreign direct investment (FDI) has always been an area of interest for the international business community. In view of its importance, the article on FDI and economic development measures and analyses the determinants and patterns of inward FDI from a global perspective. The paper evolves a set of six composite indices and establishes certain basic principles of FDI theory in terms of efficiency-seeking FDI, resource-seeking FDI and market-seeking FDI. Another paper looks at the interesting question of whether institutional integration leads to economic integration, using the case study of India-ASEAN Free Trade Agreements. Studying the impact of bilateral trade openness and deepening, the author finds that institutional integration has brought about many positive changes in the socio-economic conditions of member countries. Two papers in this issue reflect on the performance and potential of areas related to India's exports. The first paper looks at the Indian handloom industry which is one of the oldest industries and well recognised worldwide. Known for its product varieties and unmatched craftsmanship, the industry is facing a number of challenges today. This paper reviews the export performance of the sector and the supporting institutional framework. It also examines marketing efficacy of the sector empirically and suggests export marketing strategies to the firms engaged in export of handloom goods. The second paper reviews the current state and performance of Special economic Zones (SEZs) in India. Over a period of time, SEZs have witnessed generation of employment, investments and exports. The paper highlights issues of SEZs and their expectations with regard to the formulation and modification of policies. High operational cost, fall in market demand, global slowdown, lack of skilled manpower are some reasons held accountable for slack growth of SEZs in India. A robust policy design and efficient implementation can lead to the effective functioning of the SEZs which is an important mechanism for promoting trade and investment, along with generation of employment.