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China: Rivalling India in the Global Sourcing Game. To what extend do you agree with this statement. Justify this statemen - Essay Example

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“China: Rivalling India in the Global Sourcing Game” Table of Contents Introduction 3 Concepts of Global Sourcing and Supply Chain 4 Supply Chain Management Concepts 4 Global Sourcing Management Concepts 5 Analysis of Location Advantages of China 6 Static Advantages 6 Dynamic Comparative Advantage 7 Analysis of Location Advantages of India 8 Static Advantages 8 Dynamic Comparative Advantage 9 Sources of Competitive Advantage for Different Firms 10 International Companies in China and India 10 Multinational Companies in China and India 11 Global Companies in China and India 12 Conclusions 12 References 14 Bibliography 16 Introduction One of the significant changes in the global economy in …
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China: Rivalling India in the Global Sourcing Game. To what extend do you agree with this statement. Justify this statemen
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Download file to see previous pages The main reason behind the astounding success of these two fastest growing economies can be linked to the policy of outsourcing by the firms in the developed nations. It should be noted that China and India are among the most populous countries on earth which provides firms with an access to a large labour force (CIA, 2011). Another interesting fact about these two nations is that the supply of labour comes at a very cheap rate which makes it more profitable for business organizations to outsource some of their manufacturing and service processes to these two nations. On one hand India has been the leader in service industry outsourcing which has been enabled due to the large number of English speaking graduates while the Chinese have emerged as a global manufacturing hub owning to some governmental policies and a large labour force. ...
Both the nations also have drawbacks that are common as well as exclusive. Common issues facing the two nations include the rate of infrastructure which is poor in both the nations as compared to the advanced economies. Area specific issues for China include a bureaucratic and dictatorship based government which makes its difficult for business to set up shop in the nation. In India problems also arise in the large scale corruption and bureaucratic red tapism (Cavusgil, Knight & Riesenberger, 2009, p.465). The present study would undertake an evaluation of these two nations on different aspects of outsourcing particularly the elements of supply chain management so as to find out the more competitive nation. Concepts of Global Sourcing and Supply Chain Supply Chain Management Concepts Supply chain management is perhaps the most crucial aspect for success of an outsourcing strategy as most of the finished product need to be sourced to a third nation. The development of an effective supply chain encompasses the most critical aspect as it determines the overall effectiveness of a location. Supply chain aspects include transfer of goods by rail air and sea. It is to be noted that both these nations have an extensive geographical area and both of them have a fairly long coastline. A study conducted by the World Bank report the cost of logistics and supply chain in India is among the highest in the world with the cost estimated at about 14 percent of the total value of a good. The Chinese score well than India in this regard with the logistics cost as a total value of the offering being estimated at 10 percent of the total value of the goods. The higher cost of logistics has been ...Download file to see next pagesRead More
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