International Business is defined as the exchange of goods and services between businesses and individuals in multiple countries, or simply put, business transactions that takes place across national borders. These transactions include the transfer of goods and services, investments, transfer of technology and manufacturing, and capital among the countries [ CITATION STa08 l 2052 ]. In year 1991, the economic crises have obligated the Indian Government to launch numerous economy reforms. The centre of economic reforms has been liberalization, privatization and globalization which consist of important tariff curtailment, abolishment of all quantitative limitation on non-consumer products, unification of the exchange rates and introduction of liberal set of rules for Foreign direct Investment (FDI) and implementation of current account convertibility. The economic reforms implemented in the country since the early 1990s have helped India grow more than 6% on an average since 1992-1993[ CITATION Baj13 l 1033 ]. Before the year 1991, India adapted to a closed door economy policy towards international trade and capital flows. Government of India compel to launch numerous economic reforms process in order to take the country out of the economic crisis and speed up the growing economy of the country, including globalization, liberalization and privatization[ CITATION Raz11 l 2052 ]. The government of India adapted to economic liberalization which including abolished the import licensing, removed quantitative restriction on non-consumer goods and also the curtailment of import tariffs had attracted foreign organizations to do business in the country. According to WTO Report (1998), India’s import licensing system was largely repealed in 1991 especially in capital and industrial products; however it initially continued fundamentally for some consumer goods. Tariffs over 1990-2005 were significantly decreased from an average of just under 79% to 17%. The reduction in tariffs has been reflected in the increased openness of the Indian economy, which has seen the share of exports of goods and services to GDP rise from 7.3% (1990) to 19% (2004), and similarly the share of imports of goods and services to GDP rising from 9.9% to 21%[ CITATION Mic l 2052 ]. For Instance, the foreign investment in foods manufacturing sectors have expanded rapidly up to 51 percent when the tariffs reform impact on average duties in the foods sectors being halved in 1993. Indian has become a founding member of World Trade Organization (WTO) which created an international trade platform with 194 member countries. Member countries of WTO can enjoy special tariff offers where they can set tariff below the limits but not beyond the limits in order to encourage open trade among the member countries.