Answer to Question #240330 in Management for Minnie

Question

Imagine that you are working for a Durban based company that is evaluating whether it should move its manufacturing to India or China. You have been asked to present the pros and cons of this investment. Based on what you have learned in your studies thus far, what political, legal, economic, social, and business factors would you need to assess for each country? 

Answer 1

India, officially known as the Republic of India, is the seventh largest country by area, and the second most populous in the world with more than 1.2 billion people. Attaining independence in 1947, the South Asian country is known for its cultural diversity and is also among the world’s leading democratic countries while China is an emerging economy that offers lot of market opportunities for foreign investment. Although the country has a huge potential for economic growth offering access to a large market and considerable savings in labor costs, caution must be used due to differences in the political and cultural environment that create risk and pose uncertainty for foreign investors.