Political regimes between China and India

1550 WordsAug 25, 20147 Pages
When people are seeking new opportunities in other countries, China and India is popular choices for investor as the two most populous on the Earth. Both are emerging economies that have illustrated average GDP growth greater than 7 percent over the few years*. Noticeably, both India and China are largest avoided by the global economics crisis in 2010,maintaining above GDP growth when western countries are suffering economics contraction. Despite of successful changes, we still need to consider further elements for our investment. It includes regimes, laws, economy environment and population. However, if I want to do a mobile game company, I will choose China. In this essay, I will discuss above elements in China and India and also…show more content…
Nirupam and Jeffrey (2000) have found that, on quotas and tariffs, India out of 59 countries being ranked. India is ranked 52 on average tariff rate in 1999. Reductions of tariff rates (between 0 and 20 percent) required much greater openness to averages in East Asia. Most significantly, as many exporting countries of East Asia has been successful over past several decades, tax tariff on imported goods used for export and on imported inputs into export production should be duty free. For instance, tariff in agriculture, An (2012) has argue that the average bound rate in other developing countries for agricultural imports such as China and Brazil is 16 percent and 35 percent respectively, whereas India is 113 percent and higher than its 37 percent average bound rate for non-agricultural products. Therefore, tariff will be a huge barrier for foreign investor to enter India market but China has not this major impediment to larger FDI inflows in. Lastly, why I want to do business, especially mobile game in China? In above, we can find these reasons: (1) easy to create a company because of the regime, (2) e business is a support industry by Chinese government and (3) Lower tariff than India. In comparison, India has several main barriers to expand FDI into marker: (1) Restrictive FDI regime because of the approval (2) Lack of transparent sectorial polices for FDI (3) High tax rates by international standards (Sebastian, Rodney, Parameswaran, Ashvin and
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