Differences in Setting Up a Business in China vs India Research Paper

Differences in Setting Up a Business in China vs India - Research Paper ExampleA major difference betwixt China and India lies within the political systems of the two countries, with China having the Communist Party system while India having a democratic system. This provides India with numerous comparative advantages over China (Nobrega, 2008). In spite of the laziness of the courts in India, the intelligent system protects the property rights whereas intellectual property rights are frequently violated in China and production line is done primarily through interpersonal networking a concept known as guanxi (Adams, 2007). In cost of the political systems, China is representing market reforms economically which encourages business models that are capitalist-based and allows more free alternate than India. India, on the other hand, has a system of commerce that was based upon the Soviet model until the 1980s, and has ever since, reforming to follow China in terms of freedom of t rade and put inment of the capitalist-based business models (Runckel, 2007). China and India have comparable to(predicate) trade barriers and reduced tariffs. However, China is more liberal for the international companies than India. China has removed restrictions on the retail trade and is modernizing the sector with huge investments whereas, in India, international companies find greater restrictions. For example, a US mint can have just one director to establish its business in China whereas for it to establish a business in India, a minimum of two directors are required (inchincloser.com, 2010).