International business in India is of prime importance because it has an important role in India's economic growth. Not only does it enhance competitiveness, and expand business opportunities for domestic markets, but it also is crucial for the exports and imports between India and other countries. Right from the time of independence, the INR and dollar exchange rate has been important. What has to be remembered is that at the time of India's independence, there were no outstanding credits on the balance sheet of India which meant that the Indian Rupee was at parity with the US Dollar. However, the Rupee was pegged to Pounds at that time and that meant 1 pound was equivalent to INR 13. After independence, the Indian Rupee continued to peg to the British pound at a rate of 1 Rupee = 1 Shilling and 6 pence. When India became a republic nation in 1950 and the constitution in 1952 the USD was equal to 4.16 INR. However, it was in 1944 according to the Bretton Woo...