China and India

Oct 02

China and India are the two most populous countries in the world. Despite relatively small growth rates when compared to the world, 1.312% for India and 0.481% for China, they still add every 22,271,565 new people to the world every year. In some cases, the size of the population has prompted government intervention, such as China’s one-child policy for urban residents. Infrastructure throughout India has struggled to keep pace with the burgeoning population. In both cases, the sheer mass of available workers has produced an economic engine built on top of cheap labor. Despite impressive growth, both of these countries have relatively fragile economies with high dependence on foreign allies. Emerging economies China and India are identified as emerging economies. Political and regional conflict and instability ¬†over the last century has caused some setbacks economically. China has only operated as a market-oriented economy for the last few decades, during which time it has seen extensive growth. India has focused on the IT industry and has made great headway in winning business, although the appeal to Indian IT services is often the low cost relative to other sources. As a result, they have not enjoyed the high economic benefit from their IT outsourcing that might be expected. Fragile economy While both economies are growing, they are fragile. Risks for these two economies include unrest and discontent among citizens. In the case of China, the current communist government only goes back about 70 years, which is a relatively short period of time. Currency issues affect both countries. China has been under pressure from western trading partners in recent years to voluntarily increase the value of their currency against the Dollar and other currencies. Trade deficits and high exports are the reasons most often cited for this pressure. An increase in the value of the Yuan would benefit only the west, and not Chinese interests, which understandably causes reluctance on the part of the Chinese government to comply. Inflation poses a substantial threat to social programs and devaluation of the dollar conflicts with western interests. India has experienced growth economically, but their infrastructure has not kept pace. There is a stark contrast between urban and rural areas, with a great deal of...

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The People’s Republic of China

Sep 24

Along with the general focus on geography and culture as they impact contemporary business, I had the opportunity to write an in depth paper on China and prepare a presentation for my class. China is a dynamic and complicated country. They have increasing political and economic leverage, while at the same time eroding their natural resources and polluting their environment. Growth is always complicated, and the pace they’ve maintained is even more challenging. See my findings below. The People’s Republic of China – Presentation The People’s Republic of China – Handout The People’s Republic of China Download The People’s Republic of China – Handout Download The People’s Republic of...

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