Question

compare and contras two countries and the different Regulatory and Legal aspects of their different Global Business Environments

Answer 1

The world defines India to be a federal state, and China as a centralized one. China, the world's largest communist nation and India, with the world's biggest democracy differs on the regulatory and legal aspects on the global business environments. China transitioned to a market-based system from a socialist system, and had no formal associated institutions and commercial legal system in place when its economy in the 1980s began to take off . On the other hand, India has a long history of modern financial markets and legal institutions, and the country inherited a set of the large institutions. The centralized power along with the realization-focused comparison concerns to justice provided the flexibility to China for building infrastructure for economic facilities and for promoting the policy innovation development of economy. On contrary, India has chosen different path, with faith in the philosophy for the evolutionary social change through ideal arrangement in politics. The constitutional democracy, inclusive of the judicial independence and universal adult suffrage, has provided a solid foundation for the law rule as a governance principle, wherein the governance function is limited by the huge gap between the huge social disparity and ideal institutional arrangement. Indians value diversity more compared to scaling up the exciting innovations.

The economy of China beats India hands down in entrepreneurship. It's digital economy grows not just due to consumers and investors but also because it's government too supports it. Chinese Premier Li Keqiang started an 'Internet Plus' policy with an aim to promote the integration of digital technologies into numerous economic sectors. Moreover China produces more entrepreneurs compared to India due to the large economic base. More people in China participate formally in the economy compared to India.

The slowdown growth in China is mainly due to political choices due to deliberate exchange rate depreciation, discouraging imports and promoting exports, therefore rapidly accumulating foreign exchange (forex) reserves. India needs to reform its labor laws, grow its manufacturing sector, invest in infrastructure, further liberalize its global trade, and strengthen its financial system by decreasing the influence and dominance of the public sector.