Comparing Business and Econimic Opportunities in India and China Essay

...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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