China versus India: Market Comparison Essay examples

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China versus India: Market Comparison

India
The globalisation of a company goes always along with a great amount of opportunities but also with many risks. India and China are both very interesting countries to move into.
India became democratic after gaining independence from Britain in 1947. From then, up to the early 1990s India has had a mixed economy, which was identified by a lot of state-owned businesses, centralized planning, and subsidies. This lead to a dramatic constriction of the private sector. During this time it was really hard for the private sector to expand because they needed a permission of the government to do so. Sometimes the companies had to wait for month to get the allowance for normal business activities
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In 1999 only 60 of the 300 state-owned businesses went over into private hands.
All these reforms have been very successful, India managed to grow 6.1 per cent in the 1990s and in spite of the global economic slowdown they still managed a growth of 5.5 per cent in 2002. The foreign investments rose from $150 million in 1991 to $ 5 billion in 2002.
But still the political opposition has slowed down further import tariff reductions because they fear India to get flooded from cheap Chinese products as soon as the barriers get lowered again. The strict labour laws have not been loosened yet and some products are, according to the actual law, only allowed to be produced by a small company.
China
China is one of the countries which turned despite a communist government, from a command to a mixed economy. In 1949 the people's Republic of China was founded by the Chinese Communist Party under Mao Zedong. Under his leadership of almost 30 years to 1976 the GDP already had an average annual growth 6.7 per cent with was mostly due to mobilizing additional resources. But the investments became inefficient with the time and the relatively high growth could only be implemented in very small parts to a higher consume of the population. After the death of Mao Zedong in 1976 his successor Deng Xiaoping introduced economic reforms in 1978. Since the middle of the 1980s private companies in the
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