Economic Growth of India and China
The rise of India and China in recent decades has led these two countries become an important economic pole of the worlds leading role entice other Asian economies in the context of both the U.S. and Japanese economic growth are low. Economy of the two countries have grown during the last 5 years with average growth of annual GDP of India is 7.2% and China is 10% (World Bank, nd). In the past decade, Chinas economy has surpassed the U.S. and Indian economy grew more than Japan (in purchasing power parity). The strong growth of the two economies has changed the international balance of trade, investment and technology, affecting countries in Asia and the world. The rise of India and China not only alter the structure of the world economy but also gives the multinational companies (MNCs) are numerous opportunities but also poses many challenges.
The essays are presented in the report, focused on investigating the development of the two economies India and China to explore the impact of two economic growth for the world economy and MNCs – economic entity has an important role in business activities in the context of globalization of world economy is going very strong.
The emergence of two economies China and India are the driving force for economic development in Asia, it provides opportunities for MNCs to expand the business internationally. With a population of large and increasing national income, the emergence of young middle class, India and China are regarded as ideal investment destination of the MNCs in the near future. On the other hand, it also provides an opportunity for other countries to increase the export of goods and services in these two economies.