The Rise of China and India
Dr. Bob Barrett
January 10, 2015
The steady rise of China and India within the global trade markets has seen exponential growth in recent years. There are several advantages that allow India and China to remain in front of their global competition. According to Gaspar et al. (2014), China competitive advantage lies in their exportation of manufactured goods, where â€œIndiaâ€™s abundant factor has been relatively well educated, English speaking labor that provides a low-cost gateway to global services exports.â€ However, one of the fundamental advantages China and India have is their ...view middle of the document...
, 2014, 44). In both countries, the labor availability is extremely high due to workers coming in from villages to work in factories and call-centers within the large cities. This allows them to keep their labor abundant and capital low, while still utilizing their access to technology.
Additionally, China and India have emerged with the fasted growing economies in the world, with China seeing a 10% growth margin between 1991 and 2009, and India with 6% during the same time (Soo, 2012). To capitalize on their global trade domination, China and India entered in to a bi-lateral trade relationship during the 2000â€™s which proved to be very beneficial to both countriesâ€™ economies (Batra, 2011). â€œChina has now emerges as the larges-single-country trading partner for India. India-China trade increased to $42 billion from $17 billion over the period 2005/6-2009/10â€ (Batra, 2011). China also became the worldâ€™s largest manufacturing exporter and second-largest importer in 2009 (surpassing Japan), and dominates the exportation of construction services coming in at number three in the world (Soo, 2012). Indiaâ€™s access to the financial, computing and the communications sector has surpassed China in net exports. â€œIndia is the worldâ€™s second largest exporter of computing and information...