China Versus India: Market Comparison Essay

2246 words - 9 pages

China versus India: Market Comparison

India
The globalisation of a company goes always along with a great amount of opportunities but also with many risks. India and China are both very interesting countries to move into.
India became democratic after gaining independence from Britain in 1947. From then, up to the early 1990s India has had a mixed economy, which was identified by a lot of state-owned businesses, centralized planning, and subsidies. This lead to a dramatic constriction of the private sector. During this time it was really hard for the private sector to expand because they needed a permission of the government to do so. Sometimes the companies had to wait for month to get the allowance for normal business activities such as expanding production or hiring a new director. Additional there where high import tariffs, production quotas, very strict labour laws, highly restricted foreign investment and price setting by the government, instead of by the market, which made impossible for the private sector to get stronger and almost very hard and unattractive for foreign investors to go into the Indian market.
In 1991, the government recognized that it could not go on like this and created a high-flying economic reform programme. The industrial licensing system got removed and areas which where reserved for the stated-owned companies got opened up to the private sector. Also foreign investors where welcome now. Foreign ownership of 100 per cent was still only allowed under certain circumstances but foreign equity stakes, up to 51 per cent, got permission without any problems. In addition, raw material and a lot of industrial goods could be imported for free and the maximum tariff for imported goods was cut down from 400 per cent to 65 per cent. The plans of the government to privatize the state-owned turned out to be not as successful as it should have been because of a strong communistic opposition. In 1999 only 60 of the 300 state-owned businesses went over into private hands.
All these reforms have been very successful, India managed to grow 6.1 per cent in the 1990s and in spite of the global economic slowdown they still managed a growth of 5.5 per cent in 2002. The foreign investments rose from $150 million in 1991 to $ 5 billion in 2002.
But still the political opposition has slowed down further import tariff reductions because they fear India to get flooded from cheap Chinese products as soon as the barriers get lowered again. The strict labour laws have not been loosened yet and some products are, according to the actual law, only allowed to be produced by a small company.
China
China is one of the countries which turned despite a communist government, from a command to a mixed economy. In 1949 the people's Republic of China was founded by the Chinese Communist Party under Mao Zedong. Under his leadership of almost 30 years to 1976 the GDP already had an average annual growth 6.7 per cent with was mostly due to...

Find Another Essay On China versus India: Market Comparison

India becoming an important research center

2425 words - 10 pages , Philippines and Malaysia are competitive with India, but India's main competitors in the BPO space produce a fraction of the graduates that India does.China versus IndiaThe two most populated countries in the world, China and India, are also two of the world's fastest-growing economies. However, though foreign direct investment (FDI) in research and development is becoming increasingly important components of the economic growth of both countries

cultural anaylsis Essay

1194 words - 5 pages Indian market consumption behavior. A market that has little purchasing power cannot drive cost down. Thus, consumers have been left unconcerned with price because it is believed to be unalterably by their patterns of consumption. Thus, a comparison between China and India’s behavioral attributes showcase how marketers can enter Indian consumers easier than Chinese. Chinese consumers research multiple options before they purchase most products

Why China Can Attract More FDI: A Response to "Competitiveness in India and China: the FDI puzzle"

1896 words - 8 pages rivalry can’t certainly verify the larger FDI flows to China as compared with India (pp. 312-320). As Prime, Subrahmanyam and Lin mentioned, both countries have the similar potential market capacity. In the factor conditions (infrastructure, technology and labor force), both countries have made major progress with infrastructure, but weakness remains in both places (Bai and Qian, 2010; Patel and Bhattacharya, 2010; Sweeney 2010). Compared with

kazakh

1830 words - 7 pages economically and therefore exchange different experiences useful for both of the sides. Being partners makes them even stronger as their alliance makes them develop faster in comparison to their solitary development. To situation requires a deep analysis of the economic activity of each these countries, because China and India are not just about huge populations, but also about bright history and future.2. China's economyWhat capacity does China

Socioeconomic Populism: The Populist Measures of India and China

2734 words - 11 pages system of governance sustains a steady growth of socioeconomic populism. The paper will primarily examine; the populist measures of India and evaluate them in comparison to the populist measures in China. As the welfare ideologies are oft considered similar, this paper will help us to study populist measures in two different governance systems and suggest any changes that can be made in either structure. The paper will discuss welfare measures such

Development of Traditions

531 words - 2 pages life they would be acknowledged with a better life. In comparison, Chinese religions like Confucianism emphasized teachings of benevolence, loyalty, and non violence which like in India kept many doing what was right and providing more safety. There was however a diversity between the kinds of traditions in these countries. For example, in China there was mainly a single tradition which was Daoism but in India there was a tradition created from the dividing of Buddhism into Mahayana and Theravada.

China, India, and Multinational Enterprises

1132 words - 5 pages expected to be equal in size to the US economy by 2020 (International Monetary Fund (IMF), 2011). It is clear that the continued expansion of China’s and India’s economies places them as a dominant economic forces that Multinational Enterprises will have to compete with for market share in China, India, emerging markets and domestically. Professor Khanna in his article China + India the Power of Two emphasizes the importance of businesses gaining a

Market Exchange

704 words - 3 pages investment makes China an almost certain win with our product.In comparison to India, the second most populous nation and a foreign direct investment confidence score of 1.4, China has a number of advantages (FDI Confidence Index, 2004, p. 3). The consensus was that China has a much more sophisticated consumer. China also possesses a strong competitor presence within their locale. The tax regime and political stability are also significantly superior to

Global Strategies for the Multinational Corporation

2308 words - 9 pages country for us" (as cited in Mukherjee, 2013, para. 8). These two MNCs are concentrating on continued growth to take advantage of the increased economic market in India. MNCs from emerging markets and challenges for expansion MNCs from emerging markets are creating a challenge for MNCs from established counties. These new competitors from Brazil, China, and India are utilizing new strategies to compete with developed countries MNCs. As

DEVELOPING STRATEGY TO IMPROVE ROAD SAFETY IN INDONESIA

1866 words - 8 pages future. India, the largest democratic nation on earth with 1.3 billion populations, has been through a rapid expansion on its economy since it took market liberalization policy in July 1991. The peak of Indian economic growth was in 2007 when it reached 9%, the second fastest growing economy in the world next only to China. Furthermore, India has nuclear power arsenal. The combination of rapid economic growth, huge population and nuclear arms

China and India will be the major players in the global economic system in 10 years time.Discuss

709 words - 3 pages globalization which they play important roles in modern societies, afterwards, return to China in order to apply their experience into Chinese market.India's population is estimated to 1,129,866,154, although its big number of habitants it hasn't obviously had such an impact on other country as China does. The labour resources and the domestic market potential that India owns are not so powerful as in China. Because of its domestic market, which is

Similar Essays

Comparison Of China And India Essay

3711 words - 15 pages Beata Jabłońska Żółwin, 22.04.2007'Comparison of development strategies in China and India'1. IntroductionThe media, financial press, are all talking about the rise of China and India in the international economy. China and India together constitute more than one-third of the world's population, both had similar development strategies prior to breaking out their insulation from the world economy and ushering from

India And China: A Comparison Of Economic Growth And Development

2154 words - 9 pages offer. India's success in the long term will depend upon their ability to reach their needs for external financing. India may need to encourage a more open free market system if it wants to gain the confidence of foreign investors. With an increase in foreign investment and continued reformation of economic policy India could eventually find themselves competing with China to become the world's economic leader.The potential for both India and China

Memo: China And India Threats Essay

1631 words - 7 pages regional tensions, including border disputes with China and difficult relations with Pakistan. A brief outline of the threats of a rising China versus the threats of a rising India: 1. Both India and China have comparable power will undermine the US’ ability to protect its interests. Power transitions between international super powers are dangerous. Furthermore, unipolarity is less dangerous than bipolarity because there are less clashes and

Online Country Brief #2 Essay

838 words - 4 pages into one of the most attractive destinations for Multinational Corporations. The Financial Express performed a study in 2013 titled “Most MNCs keen to invest in India: study” and observed: “..the survey indicates that in a comparison with other emerging Asian economies (China, Malaysia, Thailand and Philippines), India is previewed to be at par in terms of FDI attractiveness, even though current performance of MNCs in India compares favorably with
Kantoku Fuyuki Todoki English Subbed | The Power of Media - 903 Words | 01.12.1806:27 Uhr Video2Brain Excel Funktionen zum Nachschlagen und Verweisen 0 / 0139 Hits VID P2P DDL 0 Kommentare