Analyse the Factors That Explain the Recent Economic Resurgence of China and India

Submitted by: Submitted by

Views: 228

Words: 1030

Pages: 5

Category: Business and Industry

Date Submitted: 05/23/2013 06:25 PM

Report This Essay

Critically analyse the factors that explain the recent economic resurgence of China and India. How should leading economies like the United States respond to the rise of these large emerging markets? The emergence of China and India on the international scene has attracted the world's attention on these two states, mainly because their population gives them one of the more economic importance among the world. China, with its 1.3 billion inhabitants, is now the second largest economy when considered in terms of Gross Domestic Product (GDP). With 1.1 billion inhabitants, India ranks tenth in the world. Despite the low level of average income, the size of the population of these two countries, combined with rapid economic growth generated by major structural reforms (including trade liberalization) has greatly strengthened the presence of each global markets . China, in particular, is under the spotlight, as it is now the first largest exporter of goods and services. The influence of India on the global economy is more modest, when looking at the world ranking of exports India arrives in twentieth position, although it began to penetrate certain niche in services. With the emergence of these two countries, the leading economies like the United States or the European Union must choose which strategy to follow. At first we will explore the factors that explain the recent economic resurgence of China and India. In a second step we will focus on the two possible strategies that leading economies could follow: -The first is to avoid, as much as possible, economics relations between their countries and the two emerging powers that are China and India. -The second is to use the emergence of these countries to increase its own economy and so redress the global economy. In terms of GDP; the weight of emerging economies in the global economy continues to grow. Since the 1990s, the BRICS (Brazil, Russia, India, China & South Africa) stand out. Today, with more than 40% of the...