Briefly compare the political regime type in China and India. Which of the two would you prefer to do business in and why?

Intro: The Politic regime of a country is imposed to safeguard the interests of that country. However it can have the effect of limiting a country’s growth and development and can cause complications when attempting to do business within a country. China and India are two fast growing and very large countries with clear distinction in social and economic models as well as two very different politic regimes with their own unique characteristics. This essay will analyse the contrasting views into the different political regimes in India and China and the strength, opportunities and threats of conducting business with these two countries.

Paragraph 1: Political regimes as defined by (Kitschelt, 1992) are “the rules and basic political resource allocations according to which actors exercise authority by imposing and enforcing collective decisions on a bounded constituency”. The People’s Republic of China (PRC) formally a communist regime with Marxist ideologies until the economic reform in 1978 which lead them to a more modern socialism regime. China and India are two countries that have two polarizing impressions when companies think of conducting business with them. China is seen as a powerhouse when it comes to businesses. China is known for their cheap importing and exporting cost, low labor costs. However, India has emerged as a major trading power within the global economy within the last few years, although it is less remarked as China, India has slowly made its way into the top global countries for International trade. India has introduced a tax regime that is vastly more advantageous in the Special Economic Zones than