Answer to Question #51782 in Economics for rini

Question

Compare the globalisation srategies followed by the Indian and Chinese economies. Explain the chinese growth model in details.

Answer 1

Some analysts suggest that China and India are on a path to perpetual cooperation. Both are populous Asian nations experiencing high rates of economic growth with more exposure to international market forces. However, diverging political and economic ambitions could drive the two powerhouses into increasing rivalry over markets, natural resources or strategic partners, suggests Scott MacDonald, a senior partner at Aladdin Capital Management. The current industrial division of labor has China dominating manufacturing and India monopolizing the service sector, but both countries plan to compete in industries pioneered by the other. Both states have contrasting political strategies: China tries to marry economic openness with silencing political dissent, while India has the release valve of lively democratic politics, along with corruption and ethnic violence. Transfer of power in India offers more certainty than that in China. Surface similarities of two emerging economies, both juggling globalization, conceal potential conflict.