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Political Regime

In: Business and Management

Submitted By Wildcardjim
Words 1861
Pages 8
Essay Topic: Briefly compare the political regime type in China and India.
Which of the two would you prefer to do business in and why?
(You may specify the type of business.)

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 include a contrast look into the different political regimes in both China and India and the opportunities and threats of conducting business within these countries. The essay will focus on the different government regulations and control within the two nations as well as tax policy’s, intellectual property rights, and land and labour cost, concluding with which businesses would prefer potential foreign investment in each of these two nations.

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. The PRC operates under a single party socialist republic known as the ‘Communist Party of China’ which now has the ideology of ‘Socialism with Chinese Characteristics’ which could be seen as a form of capitalism. However (Fan & Morck, 2012) show that China’s new regime ‘market socialism with Chinese characteristics’ is a unique system not limited to one ideology, but with different features of free...

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