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UAGM Economic Comparison of China and India Essay

UAGM Economic Comparison of China and India Essay

ANSWER

Economic Comparison of China and India

Financial VariableAsia China

Labour large labour pool that is frequently characterised by cheap labour.a sizable labour force that is also quite economical.

Inflation Moderate generally, but prone to variations.traditionally, moderate to high inflation rates.

GDP is one of the world’s biggest economies, focusing on exports and industry. Of the largest economies in the world, having a varied economy that includes IT and services.

Economic expansion Over the previous few decades, growth rates have been consistently high. Inconsistent growth rates have periods of high expansion and slower growth.

Exports major electronics and manufactured products exporter. Exporter of textiles, agricultural goods, and IT services.

Market BalanceHistorically favourable trade balance. Despite recent gains, there is a trade deficit.

Employment/UnemploymentLow urban unemployment rate historically.Various sectors of work, including the informal and rural ones.

Corruption perception of higher levels of corruption. Perception of high to moderate degrees of corruption.

Free Trade Accords participate in several free trade agreements, such as ASEAN. Negotiating bilateral deals as well as participating in regional trade agreements like SAARC.

economic evaluation

    China: China’s robust industrial sector, expanding infrastructure, and export-oriented policy have contributed to the country’s continued high GDP growth and critical position in world commerce. However, issues with protecting intellectual property, ageing populations, and rising labour expenses have created difficulties.

    India: The rise of India’s GDP has been considerably aided by the services industry, particularly IT and software. The nation’s sizable domestic market and talented workforce are alluring. However, there have been areas of worry over regulatory difficulties, income disparity, and infrastructure constraints.

Making a Better Business Decision:

According to the comparison, both China and India have advantages and disadvantages in the commercial world:

China:

    Strong export and manufacturing capacities.

    Excellent infrastructure.

    stable economic expansion over several years.

    networks with effective supply chains and logistics.

India:

    Expanding sector of services, especially IT.

    The large and varied market for consumers.

    skilled workforce, especially in industries related to technology.

    increasing rankings for ease of doing business.

Business Risk: In terms of business risk, India, the second nation, may be regarded as such for the following reasons:

    Regulatory Complexity: Due to lengthy regulatory procedures and bureaucratic obstacles, India’s business climate can be complicated.

    Infrastructure issues: Poor infrastructure, particularly inadequate transport and energy supplies, may impact businesses’ operations.

    Consistent Policies: Long-term company planning can be complicated by frequent policy changes and regulatory uncertainties.

    Corruption and Governance: Despite efforts to combat it, corruption is still widespread in India, which impacts the fairness and transparency of economic transactions.

In conclusion, while China and India have distinctive commercial prospects, India may be viewed as a business risk because of regulatory difficulties, infrastructure issues, and governance worries. Before making a company decision, it is crucial to undertake in-depth market research and consider particular industry characteristics. Keeping up with recent developments is essential because economic conditions and views can change.

UAGM Economic Comparison of China and India Essay

QUESTION

Description

The countries you will be working with are CHINA/INDIA

1)Compare and describe economic variables of two countries. Present in a table and describe the implications for business. Do an economic analysis of each country and compare

LABOR, INFLATION, GDP, ECONOMIC GROWTH, EXPORTS, EXPORTS, TRADE BALANCE, EMPLOYMENT/UNEMPLOYMENT/CORRUPTION,  FREE TRADE AGREEMENTS

2) After the first comparison decide which of the two countries will be a better option to do business. Explain your response in facts.

Why do you consider the second country to be a business risk?

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