An Analysis of the Political-Economic Environments of China and India

Daniel Pilipczyk

Abstract


This paper critically analyses two major Asian markets, China and India, in the context of entrepreneurial investment. A generic approach is taken for the ‘general’ entrepreneur looking to enter either of the two markets. In making the conclusion, this paper assesses such aspects of the external environment as the dominant political system, legal coherence, culture, changing demographic trends, economic prominence and technological penetration. It is concluded that China is an entrepreneurial preference due to the political stability of a one party state, superior per capita GDP and contract adherence within civil law. The paper recognises the challenges of conducting business in China, such as the unique cultural elements and the concept of guanxi. India’s macro environment does, however, provide promise, such as the unique opportunity with m-commerce and the rapidly growing middle class.


Keywords


politics; economics; entrepreneurship; guanxi; India; China

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