...Start of the Comparing Business and Econimic Opportunities in India and China Essay...
From my perspective, the main factor contributes to the difference in FDI and economic growth in China and India are institutions. There are two kinds of institutions; one is formal institution, including political system, legal system and economic system, another one is informal institution, which consists of culture, business norms and ethics.
...Middle of the Comparing Business and Econimic Opportunities in India and China Essay...
India ranked 152 and China ranked 122; this indicates that compare with doing business in India, foreign companies may not have much pressure of paying tax for the government in China, which is positive sign for foreign companies to expanded to Chinese to get rid of the high tax rate. As for economic system, both of China and India used to be in the command economy, but they have reformed their economy system to mixed economy in 1978 and 1991 respectively.
...End of the Comparing Business and Econimic Opportunities in India and China Essay...
The democratic society may offer more opportunities for foreign investors as well. The India cannot surpass China within a short period of time because of the inadequate infrastructures; the inadequate infrastructures is the key factor which constraints the economic growth in India. It is capital and time-consuming to build infrastructures within a short period of time.
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China leads India in foreign investment, a key contributor to economic growth, by a margin of 10 to 1, because foreign investors, who can place their money anywhere, see more opportunities and fewer obstacles in China. If government initiates these reforms and provides the requisite infrastructure to attracts investment, the possibility that India c...
‘Doing Business In India’. In above, we can find these reasons: (1) easy to create a company because of the regime, (2) e business is a support industry by Chinese government and (3) Lower tariff than India.
Inspite of better economical and managerial reforms of India over China, India is lagging behind China. If a judicial system is centralized towards the locals who some time wants to practice some unfair, unethical and illegal means of business opuurtunities will also contribute to making China as a less choose destination.
According to Embassy of the People’s Republic of China in India, before 1991, India government was cautious of opening domestic market to foreign investors. Like the situation in China, it is important and critical for investors to know local political environment and government relations if planning to run business locally in India, since governmen...
Conclusion In this hyper competitive and ever changing business environment no business organization is certain about tomorrow. India still has a heavy regulation burden among other countries, for example the time taken to start business or to register a property is higher in India.
Foreign Business Law in China: Past Progress and Future Challenges . These reforms often distinguished between foreign business involvement and domestic activities, with reforms usually aimed first at the foreign business dealings, commonly in the form of “provisional” regulations.
Though having well defined legal system, enforcing contracts is costly and timely in India, which is another core factor damaging business incentive. In this part, instead of further criticizing India for its poor government capacity, slow decision-making, bulky procedures, bureaucratic inefficiency and so on, which may be inevitably inherited from ...
India was worse than China, but still it was better at luring FDI than Canada and Spain, which are less corrupt (ibid). Corruption is not unusual in international business; it can become a regime for investors, especially in developing countries (ibid).
Starting up of a business is simpler, with start-up shortened by 19 days, reducing the costs of getting necessary permits and establishing a company. On an average, it takes only four procedures and six days to start a new business.
The only options attainable was to merge with the new entrants in the economy and investments such as management buyout (MBO schemes which look place only those companies that had entered or showing economic malaise or fatigue while the vibrant and nerve Centre businesses and industries were sold to the so called investors as local business and indi...
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