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 control continually experienced high growth rate. Among these emerging economies, china and India have attracted nearly interest as they are the well-nigh biggest and fast-growing devil countries. The huge population of these two countries provides big(p) opportunity for foreign firms. However, there are drawbacks in the investment environment of these two countries since they are much less developed. This balk explores the attractiveness and drawbacks of doing business in these two countries in legal injury of policy-making, economic and legal environments from a perspective of New Zealand firms. This set about consists of three parts. The first part compares the differences of these two countries for New Zealand firms gestate to do business here. The second part discusses the similarity of these two countries in ter ms of investment environment. Then, this is followed by conclusion remarks. From a policy-making 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 backdrop Review, 2008).

This one party dominant system result a medium to low score for political stableness. Political stability is one of six governance indicators calculated by the human beings Bank Policy Research Working Paper Series, and is mensural on a scale of -2.5 to 2.5. From 2000 t o 2004, Chinas political stability ratio dec! reased 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 international business. The human...If you want to get a full essay, order it on our website: OrderCustomPaper.com

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