Which of the two would you prefer to do business in and why?
(You may specify the type of business.)
The Politic regime of a country is imposed to safeguard the interests of that country. However it can have the effect of limiting a country’s growth and development and can cause complications when attempting to do business within a country. China and India are two fast growing and very large countries with clear distinction in social and economic models as well as two very different politic regimes with their own unique characteristics. This essay will include a contrast look into the different political regimes in both China and India and the opportunities …show more content…
Tax policies within a country can be a major deterrent or advantage when deciding to conduct business internationally. Foreign companies in China over the past decades have experienced relatively low tax rates at around 15%. Their low tax rate was aimed at encouraging FDI growth and is one reason why China’s economy has boosted so much. The tax rate was considerably lower than that of the domestic market which was paying 33% in some instances and this preferential treatment to FDI’s was in hope of encouraging growth in specific industries that the Chinese government wanted. However the Chinese government changed the tax policy in 2007 which has led to higher