International management : India and China markets

Résumé du document

This report is for any MNC looking for geographic expansion to expand its international operations, and whether it is worth entering the Chinese or Indian markets.

Presently, many companies are looking for new emerging markets to expand their international operations. There are lots of emerging markets in Asia and in the Middle East, but the main interesting ones seem to be India and China. In this paper, we will analyze the situation in both countries (economical, political, financial and demographical) to know where it's better to invest for potential investors.

The People's Republic of China is the third biggest country worldwide in terms of surface, after Russia and Canada. It's the most populated country, with 1,321,851,888 inhabitants who share 9,326,410m². There are 14 border countries (North Korea, Russia, Mongolia, Kazakhstan, Kirghizstan, Tajikistan, Afghanistan, Pakistan, India, Nepal, Bhutan, Myanmar, Laos and Vietnam).
The average growth rate last year was around 8%, which has attracted foreign companies.

The Republic of India is located in Southern Asia. Its total surface is 3,287,590 sq km.
The country shares borders with Pakistan in the Northwest, with China, Nepal and Bhutan in the North, and with Bangladesh and Myanmar in the Eastern part of the country. The country has borders with the Arabian Sea in the West, as well as with the Bay of Bengal and the Indian Ocean in the South.
There is one main river, which is the Ganges river in the East (Ganges is the holy river).

Extraits

[...] A company who wishes to enter the Chinese market has to pay attention to the cultural aspects and habits. The best example of European failure is Danone, who tried to enter the Chinese market in the 80's selling exactly the same products than in Europe. As a consequence, it was a total failure because the Chinese were not used to milked products, and so couldn't digest it. Danone didn't study enough the Chinese market, and should have changed the recipes and adapted it to China. [...]

[...] There is for example a free and vibrant press, a judiciary which can and does overrule the government, a sophisticated legal and accounting system and a user friendly intellectual infrastructure. India's dynamic and highly competitive private sector has been for a long time the backbone of its economic activity. It represents more than 75% of its Gross Domestic Product and offers considerable scope for joint ventures and collaborations. Most of the Indian economic indicators are good, excepted the Public finances indicator. Indeed, public debt represents 90% of the GDP. Moreover, around 25% of the population lives under the poverty level. [...]

[...] There are lots of emerging markets in Asia and Middle East, but the main interesting ones seem to be India and China. In the following paper, we will analyze the environment in both countries (economical, political, financial, demographical ) to know where it's better to invest in for potential investors. China's overview The People's Republic of China is the third biggest country worldwide in term of surface, behind Russia and Canada. It's the most populated country, with billion inhabitants who share the There are 14 border countries (North Korea, Russia, Mongolia, Kazakhstan, Kirghizstan, Tajikistan, Afghanistan, Pakistan, India, Nepal, Bhutan, Myanmar, Laos, and Vietnam). [...]

[...] Environment comparision between india and china Which country has an advantage with respect to the degree of government regulation of and interference in the economy? ( India: It has a largely unregulated economy allowing acquisition of local companies and entrepreneurial establishment of new companies. China's centrally planning economy can slow investments for many years. Both countries have problems with local governments. Which country has an advantage in terms of the market for selling products and services? ( China: $ 1.6 trillion economy growing at in 2005. India has a $700 billion economy growing at 7%. [...]

[...] Oil consumption statistics in barrels per day: million million million (Source: July 2005 Bijan Khajehpour, ISM DBA Seminar) The risk is how can China get its oil when world capacity struggles to keep up with the 83 million barrel number. Upside of Risk Company risk management recognizes an upside to risk. For the China market, consider: –Population billion years: 21% (male = years: 71% (male = and over: (male = –Median Age 32 years –Life Expectancy72 years (male = 70; female = 74) CIA Factbook. http://www.cia.gov Benefits on the horizon China faces: Benefits from a huge expansion in computer Internet use (over 100 million users in 2005). Continued strong foreign investment. [...]