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India vs china technological business environment
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India's Strengths in Terms of High-Tech
Strong Economic Growth
India has an amazing rate of growth which has reached to 9% in 2007. The average rate of growth is 7% since 1994. This is an important evidence of the stable development of Indian economy. Also unlike to other developing countries India managed to have a very low rate of inflation which has remained close to 4% since 2000 and has not fluctuated much then. India seems to be one of the safest economic environments for investment when compared to other Asian countries. Moreover India’s imports almost tripled between 2001 and 2005 from $50.1 billion to $138.4 billion, while exports more than doubled, from $43.3 billion to $99.7 billion. Another import point that should be noted is that the growing middle class in India. With the continuous flow of foreign investment and rise of employment opportunities, the middle class has expanded and per capita income has been more than doubled since the mid-1980s. Augmenting purchasing power of the middle class is an attraction to foreign investment.
Low Wages
Sure that the undeniable attraction of India for foreign investment is the low wages. The vast population of India makes it possible to offer a cheap source of workforce in every part of the country. The average salary for all Indian employees working in the high-tech manufacturing sector is $ 120 per month. The average salary for qualified employees in India is $ 180 per month. Starting salaries offered to new engineering graduates range from $350 to $ 660 per month.
English-speaking educated workforce
It can be said that the English speaking, educated workforce is the main strength of India that has attracted the high-tech investment flow to the country in the fi...
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...g incentives to infrastructure companies China profits to receive foreign investment that choose better environment and infrastructure facilities.
It seems that the future high-tech wars will be between India and China. India, having experienced the positive effects of high-technology is determined to preserve its position and attract more investment. China, the economic giant of manufacturing industry also aspires to upgrade its image by being a major player in the area of high-technology.
While it is considered that there will be a competition between India and China in terms of high technology, some experts are insisting that there will be cooperation between these two countries. If they are right and we witness a Chinese-Indian economic cooperation in near future, the address of high-technology in Asia or maybe in the world is likely to be India and China.
...S$1 billion from private equity funds in the year to March 2012. In a market as large as India, that is still far from impressive, but incoming capital is expected to rise in the following year. If it does, it will represent a significant turnaround for a market that foreign private equity investors have largely shunned since the onset of the global financial crisis. Risks associated with Indian real estate investment are considerable, however. As one interviewee puts it, “It’s like China, but more complex in every possible way, without the infrastructure.” Bureaucracy, ubiquitous delays, land acquisition scandals, and an ongoing national protest movement targeting corruption have all contributed to waning foreign interest in Indian markets, with foreign direct investment and portfolio investment dropping markedly despite economic growth of about 8 percent in 2011.
To begin with, this research exposed a FDI puzzle between India and China through analyzing the current economic condition. Prime, Subrahmanyam and Lin (2011) stated, "Given their growth records, large markets, and reformed economic systems, both China and India appear to be equally likely candidates for foreign direct investment. Yet, China has received substantially more FDI" (p. 303).
...here. In doing so, they can take benefit of the country's vast business opportunities by entirely exploiting their competitive advantages and thus further augment their capabilities. This is particularly significant given that China is and will most likely linger a major goal for direct investment in the world. However, the entry of China in world’s main international trade business is contributing a lot to the opening of overseas capital, highly developed experience, in addition to organization proficiency addicted to the enterprises of Chinese, in totaling up altogether, it would give forward motion to technological novelty and structural modification in the enterprises of the Chinese. References http://english.peopledaily.com.cn/special/WTO/2000031400W103.html http://www.8thnetwork.com/translation.html http://www.wto.org/english/news_e/pres01_e/pr243_e.htm
China is the most populous state in the world, with over 1.3 trillion inhabitants (Central Intelligence Agency 2010). Because of its large population base, China also has the largest military and a booming economy that is third only America and Japan in terms of GDP; however, economic trends show that Japan’s economy is stagnating, while the American Chinese economies continue to spike upward (Google, Inc. 2010). Despite its growing economy and large military force, China lags behind America in technology and naval power. Chinese Admiral Wu Shengli said, “The Navy will move faster in researching and building new-generation weapons to boost the ability to fight in regional sea wars under the circumstance of information technology” (Xuequan 2009). This quote shows that China wants to remain a regional sea power, and not develop a blue-water navy that can compete with the American navy. Furthermore, a Popular Mechanics article showed the world that China was stealing American military “leap ahead” technology, or technology that is decades ahead of Chinese technology (Cooper 2009).
This paper is briefing of book called “Race against the Machine” written by Erik Brynjolfsson and Andrew McAfee. This paper focuses on the impact of technology on the current employment issues. Three explanations of current economic issues that is cyclical, stagnantion and “end of work” is provided (Brynjolfsson & McAfee, 2011). Then the idea of excessive progress in technology making man jobless is presented and to support it various arguments are put forward. Secondly the idea of technology development causing division of labor into high skilled, low skilled, capital, labor, superstars and ordinary labors is presented and explained in detail. Finally remedies for solving these issues are presented and explained. Major takeaways of this paper are mismatch between the productivity and job creation, interlink between Technology improvement and division of labor and importance of education in building stable skilled labors and in the developing a stable society. (Brynjolfsson & McAfee, 2011)
The book, "China's Rise: Challenges and Opportunities provides a detailed look into China’s important role in the global arena. China’s growth in the past few decades has made it a economic superpower, however, with this growth, challenges regarding its internal and external policies, military modernizations and energy dependences have risen.
Additionally, in the book US FOREIGN POLICY, Michael Cox (2012) concluded that “China’s peaceful rise has largely consoled its neighbors and the United States that it remains a status quo power. However, as it has risen, there are some (perhaps an expanding number) who predict this will lead to increased regional and global competition” (p.266). Clearly, Michael Cox indicated the point that there might be more competitions in the future relation between China and the rest of the world no matter China rises peacefully or not. In particular, China and the United States will face many intense issues since they are the two giants in th...
In the year 2007, China and India ranked first and second respectively in the list of ideal foreign direct investment (FDI) destinations, according to A T Kearney, a global strategic management consulting firm (The Press Trust of India Limited, 2007a). The two nations, because of their similarities in geopolitical, economic and demographic aspects, are often compared with each other. To determine which one is more attractive for businesses to expand to, this essay will examine the business environment of both countries from the following perspectives: political/legal, economic, socio-cultural and technological.
China's development is praised by the whole world. Its developments are not only in the economic aspect, but as well in its foreign affairs. Compared with other developed countries, China is a relatively young country. It began constructing itself in 1949. After 30 years of growth, company ownership had experienced unprecedented changes. Entirely, non-state-owned companies can now be more involved in sectors that used to be monopolized by state-owned companies.
Compared to the state of affairs during the Cold War, the world has greatly changed; indeed, the current world is quite dynamic. In recent years, the emerging markets led by China have been challenging the existing world order dominated by the Western countries. The dominance of old powers is rapidly diminishing and in fact, they are dropping down the international pecking order. Economically, the South East Asia countries account for more than half of the world Gross Domestic Product, have the highest economic growth rate (China leads with 11% growth rate p.a. closely followed by India at 9 percent) and they energy consumption is more than half the amount consumed in the world. It is predicted that in the next three decades, China and India will have attained the status of global powers and they will be competing for world leadership with the United States of America.
The Electronics industry is one of the fastest growing industries right from its origin. The profit brought out of this is much more compared to other olden industries. India is one among the largest economies in the world and has a good GDP among emerging economies. The birth and growth of this industry in India is quiet interesting. With large population and the potential consumer demand is almost unlimited and hence a strong growth performance could be expected. The base of this industry. Basically Indian market is a consuming market, it grows as people consume more. The liberalization of the economy by 1991 has helped to a rapid growth this helped the electronics industry in India as one of the most important and emerging markets. The start of this industry here dates back to early 1960’s.Electronics was primarily focused to develop in the filed of communication systems for radios, telephony, telegraphy, and television broadcast. A lot of importance was given for the augmentation of defense capabilities. Till 1980’s the electronic sector was government owned. From there on the growth of the electronic industry took off due to economic changes resulting in the globalization of the economy.
...e will dissipate. With each new day, China continues to invent new technologies and expand their global markets. China is only getting stronger, and if the United States wants to remain a contender is this race to be the best, we must stay alert and continue to not only keep up, but outperform the Chinese.
However, despite the long-term economic growth, technological progress is very important, and even if we...
China has also expanded their trading industries with countries such as South Korea, Japan, Taiwan, ASEAN, India, Russia and Hong Kong. This has not satisfied the Chinese greed for income as they also export and import goods to American countries, name...
Committee, which is the product from jointly established and held a meeting once a year. There is also agreement on trade between them several editions. Cooperation is a channel for many Australia’s company can generate branch in India. However, at first the Australia’s company should evaluate a risk assessment and the opportunity to expand branch in India. This report will provide the important information for the firm to assist making a decision that should invest in India with give some benefit advice. Report will highlight the principle information of India as the physical of country, patterns and political risks, current economic situation, the rule of investment, country’s resources and human right.