China And India As Business Destinations

China and Of india as Business Places


The existing wave of syndication has transformed just how business operations usually are executed. Within typically the past three many years, the number regarding multinational firms carrying out business in overseas countries has grown substantially. New practices these kinds of as offshoring in addition to outsourcing have come to be common in typically the recent past (Gaspar et al. 12). These developments experience been observed to be able to influence the efficiency of many organizations. International businesses are actually focusing on diverse destinations that could result in increased performance. India in addition to China are loved by many entrepreneurs because they offer numerous opportunities for international business. This discussion, therefore, gives a comparison analysis of these two nations.

Comparing India and China

Industry Analysis

Statistics show clearly India and China are characterized by stable economic growth patterns. However, the countries appear to take divergent paths in terms of economic development. To begin with, China has been observed to merge western practices and their cultural values. The best practices are then developed and applied to the major sectors in the country. On the other hand, India has focused on “the best strategies to promote economic growth through the use of its internal resources” (Buga and Meyer 16). Morrison indicates that India has mainly been focusing on specific industries and technologies to remain successful (18). Engineering technology is one of the leading industry practices in India. This move has led to the creation of competitive and effective information technology (IT) systems.

Industrial restructuring is another phenomenon that has been taken seriously in China. For instance, the agricultural sector has lost its share within the past three decades. The industry commands around 12 percent of the country’s Gross Domestic Product (Sun 6). The other sectors of the economy such as manufacturing and processing have increased within the past 25 years. The nation’s manufacturing and technology industries are some of the largest in the world today. In India, agriculture still commands over 21 percent of the GDP. The manufacturing and industrial process sectors command a share of around 26 percent of the GDP (Buga and Meyer 4).

The service sector in India has also increased significantly within the past two decades. For instance, consulting, offshore, and banking services are common in India. The provision of such services explains why some companies such as IBM and General Electric are common in India (Sun 5). Multinational companies such as Apple Incorporation, Dell, and McDonald’s have decided to expand their operations to China (Sun 8). This is the case because of the nature of its population and economic performance.

Global Market

India and China are emerging economies that continue to reshape the nature of multinational businesses. They have become favorite markets for global products and services. Morrison believes strongly that China has become a stronger player due to its sustainable economic policies (17). The growing Chinese population attracts many companies that want to do business in the country. China has remained one of the preferable business destinations for the past one decade. The country has become a favorable global market because it enjoys some of the best functions in finance, communication, and management (Kalirajan et al. 6).

On the other, India’s economic growth has remained high and sustainable since the year 1996 (Morrison 16). The country has exceeded China in terms of economic growth. The availability of quality services in the country is a major reason why more companies prefer the Indian market. Buga and Meyer argue strongly that “India has been replacing China as the best destination for lower-end export manufacturing” (7). The country is also targeted by different marketers to record positive performance. Chances are high that India will globalize faster than China shortly. The Indian strategy and market are therefore attracting more international entrepreneurs than ever before.

Selling Power

China and India have established unique trading agreements to promote their respective economies. As mentioned earlier, these countries have diverse industrial powers. That being the case, the leading industries in the countries continue to attract different trade partners. For instance, China happens to be one of the largest manufacturing destinations in the world. The Chinese manufacturing industry made it easier for the country to sell a wide range of materials and products to different global customers (Sun 9). China is also the leading manufacturer and exporter of various consumer goods and appliances. Within the past decade, China’s exports have averaged over 950 billion US dollars (Morrison 11). On the other hand, India’s exports during the same period have averaged $120 billion (Kalirajan et al. 11). This analysis shows clearly that China is still a bigger economy.

India, on the other hand, has been on the frontline to expand its industries to record positive economic results. The service industry has continued to attract the attention of many multinational corporations. India’s service industry is currently marketing to different companies in countries such as the United States, the United Kingdom, Italy, and Canada (Buga and Meyer 8). Future projections show clearly that both India and China might expand their industrial processes and eventually become some of the leading exporters in the world. Consequently, the countries will find it easier to sustain their economies and become successful.


Several attributes or metrics can be used to project the future of these two economies. India’s population is currently around one billion while that of China is 1. 3 (Gaspar et al. 49). China remains a communist nation whose economy has been growing very quick. At the exact same time, India is usually believed to become the biggest democracy within the world. That will being the situation, India has already been able to think of a new model that will promotes economic advancement and performance. The far east continues to be implementing effective policies that possess the potential to advertise economic performance. In spite of such transformations, the potency of globalization has already been observed to modify how business procedures take place (Morrison 29). This will be a clear indicator that these growing giants will always face competition through various countries.

Japan plus South Korea possess dominated various sectors and sectors inside the past forty many years. For example, the Japan automobile industry offers been unshaken for decades. This has furthermore been exactly the same situation for the actual estate and production sectors. South Korea’s an automobile plus technology industries possess a large share within the Asian market. Growing nations such because Brazil and Russian federation happen to be observed in order to disorient the character of global industry. Cultural differences have made it impossible for Indian and China to consider an early guide (Kalirajan et ing. 12). Experts think that new company or even market destinations are usually expected to come out shortly. However, it might be appropriate for The far east and India in order to focus on their own current economic versions to realize their own goals. The strategy will eventually assistance more corporations each locally and internationally.

Functions Reported

Buga, Natalia, plus Jean-Baptiste Meyer. “Indian Human Resource manager} Mobility: Brain Drain compared to Brain Gain. ” Robert Schuman Center intended for Advanced Studies, vol. 1, no. 1, the summer season, pp. 1-23.

Gaspar, Julian, et al. Summary of Worldwide Business: Understanding the Cosmopolitan Environment & Worldwide Business Functions. Cengage Learning, 2016.

Kalirajan, Kaliappa, ain al. “Have Tiongkok and India Accomplished their Potential throughout Attracting Foreign Primary Investment? ” JEKEM, vol. four, no. 3, 2012, pp. 1-20.

Morrison, David. “China’s Economic Surge: History, Trends, Issues, and Implications for the United Areas. ” Congressional Research Services, vol. 1, no. one particular, 2015, pp. 1-44.

Sunshine, Sunny, et al. “A Comparative Title Advantage Framework intended for Cross-Border M& As: The Rise involving Chinese and Indian MNEs. ” Journal regarding World Business, vol. 47, number 1, sp

Leave a Reply

Your email address will not be published. Required fields are marked *