Political Regime Essay

1873 Words Sep 16th, 2014 8 Pages
Essay Topic: Briefly compare the political regime type in China and India.
Which of the two would you prefer to do business in and why?
(You may specify the type of business.)

The Politic regime of a country is imposed to safeguard the interests of that country. However it can have the effect of limiting a country’s growth and development and can cause complications when attempting to do business within a country. China and India are two fast growing and very large countries with clear distinction in social and economic models as well as two very different politic regimes with their own unique characteristics. This essay will include a contrast look into the different political regimes in both China and India and the opportunities
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(Sengupta & Corbridge, 2013) look at this in chapter 2 of their book and describe how the Indian political regime takes on both the “western liberal traditions of democracy with universal adult franchise, competing political parties and human rights and on the other side traits of a social democratic ideology with Fabien socialism and Marxism”.

Organisations consider many things when entering a foreign market and the government regulations surrounding an industry is just one. Political changes can have major effects on a business with the possibility of new regulations causing decreased profits and/or being unable to continue business within that country. As China employs a one party system the political party would seem to have views that are unlikely to change dramatically over time giving more political stability and less likely for a business to find itself under new government regulations. However this is not the case and legislation and regulations have been subjected to change over the past decade. As discussed by (Quer, Claver,& Rienda, 2010) in their article “the legislative framework in China for regulating foreign investments is subject to change and has been ever since China joined the World Trade Organisation (WTO) in 2001”. However this does not necessary deter businesses as it is seen as an acceptable trade-off for the cheap land