International Business - Essay Example

Factors that have aided the manufacturing business in China First, in order to achieve economic sustainability, the Chinese economy was transformed by various regimes from a mass market for western goods and services, to a supplier of cheap goods, materials, and labour, thus beating much of the global competition from many other countries. An example is the setting up of Honda car manufacturing plant in the northern eastern China. Secondly, the Deng Xiaoping political and economic reforms created rooms for development of liberal market business in an environment of well-controlled cheap labour, spurring rapid economic growth.

Thirdly, after the reforms, China was modeled on five-year plan focusing on invest in infrastructure, increase in enterprise activity, advancement in technology and controlled population growth. This model has proven successful in the rapid economic growth of China. . Challenges facing the manufacturing business in China First, the Chinese economy has been relying heavily on agricultural subsistence sectors to feed its population, a factor that made its economy almost to crumble in 1960 due to crop failure.

Secondly, in China there has been interchange of power between leftist and rightist, with the left in power promotion ideologies at the expense economic and material development, while when rights being in government modernization, free business policies and building of economic relation with other nation encouraged spurring economic growth. These situations have been creating political struggles in China, which negatively affects the economic developments. Additionally, though doing well in terms of economic growth, China is still affected by a wide a range of problems including poverty, illiteracy levels, and political instability that can greatly affect the manufacturing business and the economy at large.

Lastly, China economy largely relies on the dollars with the country’s currency Renminbi having low value, thus in times of financial crisis, the economy and industries suffer a lot due to over reliance on dollar. The IT service providers in India Indian software and IT companies compete successfully with other global companies by offering an attractive combination of quality, cost-effectiveness, short turnaround time and capacity to quickly scale up operations (OECD, 2006, P.129). The success of IT in India can be attributed to the following factors: First, India has a strong commercial sector with a wealthy middle classes and a strong culture of entrepreneurship making, India to capitalize on the emerging global IT and ICT services market.

Secondly, India has allowed many