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China And India Opportunities And Challenges

1197 words - 5 pages

MBA630
February 7th 2016
Case 6-4: China and India: Opportunities and Challenges
Overtime, China and India have developed some capabilities, which have affected developed nations like U.S, Germany, Japan and so on. The rising capability that the two countries possess is as a result of their ability to assign their available resources (factor conditions) to specific productive areas to yield viable outcome. Rarely has the economic ascent of two still relatively poor nations been watched with such a mixture of awe, opportunism, and trepidation. The postwar era witnessed economic miracles in Japan and South Korea. But neither was populous enough to power worldwide growth or change the game ...view middle of the document...

India is a rising power in software, design, services, and precision industry. (Cravens, 2013) One implication is that the balance of power in many technologies will likely move from West to East. An obvious reason is that China and India graduate a combined half a million engineers and scientists a year, vs. 60,000 in the U.S. In life sciences, projects the McKinsey Global Institute, the total number of young researches in both nations will rise by 35%, to 1.6 million by 2008. The U.S. supply will drop by 11% to 760,000. As most Western scientists will tell you, China and India already are making important contributions in medicine and materials that will help everyone. Because these nations can throw more brains at technical problems at a fraction of the cost, their contributions to innovation will grow. (Cravens, 2013)
Today, Chinese and Indian consumers and companies now demand the latest technologies and features. Studies show the attitudes and aspirations of today’s young Chinese and Indians resemble those of Americans a few decades ago. Surveys of thousands of young adults in both nations by marketing firm Grey Global Group found they are overwhelmingly optimistic about the future, believe success is in their hands, and view products as status symbols. These rapid changes will test industrialized nations such as the U.S in their true commitment to global and open trade. U.S and other established powers will have to learn to make room for China and India. For in almost every dimension such as consumer markets, investors, producers, and user of energy and commodities, show that they will be the 21st century heavyweights. In the coming decades, China and India will disrupt workforces, industries, companies, and markets in ways we can barely begin to imagine. The upheaval will test America’s commitment to the global trade system and shake its confidence. In the 19th century, Europe went through a similar trauma when it realized a new giant, the U.S had arrived. It’s up to America to manage its own expectation of China and India as either a thread or opportunity. American should be as open minded as Europe was 100 years ago. How these Asian giants integrate with the rest of the world will largely shape the 21st century global economy. (Cravens, 2013)
Plenty of forces can still throw the Chinese and Indian economies far off course. The economic fundaments of both nations, with their enormous populations of young workers and consumers, point to strong growth for decades under almost every forecast. But it is instructive to...

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