Is Chindia a friend or a threat?
Argue whether........ and provide both sides of arguments in the perspectives of economic, political, social, and environmental and your conclusion in this debate
China's and India's bilateral trade is in its infancy. Yet new momentum suggests the building of a powerful relationship. China-India "Chindia"enterprises will have access to complementary skills and resources and will, in effect, be able to lead most global markets. New joint ventures between Indian IT services companies and their Chinese counterparts are early examples of how a formidable Chindia economy could grow. Indian companies are bringing world-class software expertise and global market leadership to the table.
When China and India's economic strength is rising worldwide, market strategists and IT decision-makers need a toolkit to track their bilateral trade activities. To date, much of the West's mainstream focus on China and India has focused on outsourcing of manufacturing jobs and low-end service jobs to the West. Optimistic observers believe that the current job flow across the Pacific is irrelevant in the long run as innovation remains strong in Western countries, and innovation creates new jobs and economic growth.
On the surface, this view is absolutely correct, but it masks the underlying truth of what is happening today in India and China: both countries are improving in driving technological innovation. Traditional Western high-tech companies are rapidly sourcing not only the assembly of their Indian and Chinese goods, but also the technology that drives them. China and India will soon be the world's dominant economic tales, a phenomenon that may well last most of the 21st century. Nonetheless, the quality of information, analysis and advice on how to make key decisions relating to China and India is inconsistent, despite rising stakes. Executives and managers need a comprehensive view not only to recognize China and India, both separately and together, but also to determine future threats and business opportunities.
China and India today hardly qualify as trading partners for industrialized economies by conventional standards. In 2005, overall bilateral trade stood at $18.7 billion, more than twice as high as in 2003. This is just a small fraction of the foreign trade of each country. In 2005, China's total foreign trade amounted to $1.4 trillion, up 23% from 2004. India's foreign trade amounted to $241 billion in the 2005-06 fiscal year, up 28%. Nevertheless, the annual growth rate of Chindia's internal trade exceeds those high-step averages, at an average 30% to 40%.
Is Chindia a friend or a threat? Argue whether........ and provide both sides of arguments in...
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