investment of china and india

The interest placed on emerging economies has been increasing in recent years. While the Western countries face stagnant economies, these countries prevail continually experienced high growth rate. Among these emerging economies, chinaware and India have attracted nearly interest as they are the near biggest and fast-growing devil countries. The huge population of these two countries provides large opportunity for foreign firms. However, there are drawbacks in the investment environment of these two countries since they are much less developed. This adjudicate explores the attractiveness and drawbacks of doing business in these two countries in equipment casualty of policy-making, economic and legal environments from a perspective of New Zealand firms. This judge consists of three parts. The first part compares the differences of these two countries for New Zealand firms confide to do business here. The second part discusses the similarity of these two countries in terms of investment environment. Then, this is followed by conclusion remarks. From a semipolitical perspective, China is officially a Communist state, and the Chinese Communist Party (CCP) is the sole political party allowed in the country. According to the Chinese Constitution, CCP is the utmost source of power (China filth Review, 2008).

This one party dominant system result a medium to low score for political stability. Political stability is one of six governance indicators calculated by the universe Bank Policy Research Working Paper Series, and is metrical on a scale of -2.5 to 2.5. From 2000 to 2004, Chinas political stability ratio decr! eased from 0.13 to -0.07 (China Country Review, 2008). This ratio indicates the likelihood of credible threats (including coups, domestic violence, and terrorism etc.) to, or changes in, the government in power. Under such political environment, foreign firms relationship with government becomes crucial. The political environment of China presents drawbacks for internationalist business. The human...If you want to get a full essay, order it on our website: OrderCustomPaper.com

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