Essays on Comparative Analysis of Investment and Trade Performance between China and India Case Study

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The paper "Comparative Analysis of Investment and Trade Performance between China and India" is a perfect example of a micro and macroeconomic case study.   Pao and Tsai (2011) aver that China and India exist among the current largest global economies. The two countries have attained a remarkable growth regarding trade and investment in recent years. However, there are evident differences and disparities in the tremendous economic development of the two countries despite both having a considerable room for growth. Today India has transformed into an influential trading superpower as well as a tremendously increasing magnet for the foreign development investors.

The incumbent’ s vital role in the international economy to this level has been pronounced than the rise as well as the dominance of China (Hausmann, Hwang, & Rodrik, 2007). India is, however, appreciated for the many opportunities it is creating for its people, employees, and domestic as well as foreign firms (Jayanthakumaran, Verma & Liu, 2012)China’ s commodities trade has not only increased promptly but also undertaken substantial restructuring and upgrading. Active involvement of foreign-invested companies and businesses coupled with liberal trade policies account for the main factors that promote the growth of trade and investment in China.

Most of the foreign-invested enterprises that stimulate Chinas economic growth come from the neighboring Asian countries especially those in both East and Southeast Asia. Dicken (2007) add that China has evolved into a critical link in an escalating regional production network. Contrary, trade expansion in India has not resulted in considerable structural transformations as the national commodity exports have steadily remained weak. However, trade in services continues to play an imperative role in the economic development of India. According to Hausmann et al.

(2007), typical challenges facing the proliferation of trade in India entail the lack of export-oriented foreign investment causing a lesser integration effect regarding Asian economies.


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