China and India: Contest of the Century - Essay Example

In this regard, the discourse would identify the implications for the West and if these are causes for concern. The comments initially identified relevant issues presented in the article, particularly focusing on the developments leading to China and India being classified as global giants in the 21st century.

Further, the commentary proffered implications of the trend to Western countries and an identification of causes of concern. Reference was made to Ghemawat & Hout’s (2008) article entitled “Tomorrow’s Global Giants: Not the Usual Suspects” to infer the possible threats China and India could inflict on contemporary multinational companies. The need to be vigilant and to prepare to refocus global strategies is recommended to address the impending global leadership of these giants in the future.

“China and India: Contest of the Century” The article from The Economist entitled “China and India: Contest of the Century” initially made reference to global powers of the 19th century as centered on three distinct nations: America, Japan, and Germany, after the British Empire had its share of predominance in world power. The article thereby highlighted China and India at the center stage, as emerging global giants in the 21st century. The rationale for these two countries’ global prominence lies in various factors, with the population and the geographic size, among others, categorizing them as continents.

Further, both have manifested unprecedented growth in terms of economic activities and affluence which encompass not only their respective domestic markets but have expanded on a global scale. Reference was noted on China’s ability to export products in the West and in other countries, at prices deemed to aggressively compete with domestic products. Another reason for these nations’ strengths is their focus on developing military power through training and by adapting to armaments parallel with the most contemporary technological breakthroughs.

After having identified the source of strengths and competitive advantage, both China and India were evaluated in terms of affiliations and diplomacy with America, in particular. The comparative difference lies in India’s more diplomatic stance, in conjunction with a form of government that befits international relations. In this regard, the possibility of India gaining stronger alliances with Western nations and other Asian counterparts could prove to be a more beneficial strategy in gaining favored global strength.

With these issues and concerns, the implications in the West could possibly come in terms of contending with changing global leadership and the need to refocus Western strategies in emerging markets. As averred by Ghemawat & Hout (2008) in their article entitled “Tomorrow’s Global Giants: Not the Usual Suspects”, emerging multinational corporations from these two global giants, China and India “represent the threat of displacement… the greater openness today of both developed and developing economies to foreign trade and investment means that the best opportunities for growth in sales and profits are increasingly available to companies of all origins.

Further, ongoing changes in the location of market growth, the shape of global supply chains, and the emergence of new global business models suggest that the conditions are right for aggressive global players to move outside their comfort zones. The industry may have been destiny thus far, but it is unlikely to remain so” (Ghemawat & Hout, 2008, 139). These developments are definitely a cause for concern and to turn away from complacency. As learned through time, the external environment is a continually changing and competitive arena that presents opportunities and threats.

The leaders that emerge are those who are able to match internal strengths to external opportunities. The contest of the century is focused on two giants from the East. However, their leadership and target markets for expanded operations in the global markets would definitely affect organizations rooted in the West. As their products and services reach Western shores, the corporations and economies that have relied on conventional and traditional strategies face the threat of displacement and possible demise.

As the financial crisis that started in the United States caused a global economic glitch, the contest between China and India would definitely affect the strategies of corporations and governments in the West. America and other Western nations must remain vigilant and prepare to develop a proactive stance on what China and India could affect in various external environments of Western nations.