De la Peña, Mariel B.

BSBA-MM-3
Module 4-Reflection Paper
Pick an industry and company that interests you. As a global manager of the firm
you have selected, you were asked to review China and India and determine
which market to enter first. How would you evaluate each market and its potential
customers? Use your understanding of the stage of development for each
country from the case study as well as online resources. Which country would
you recommend entering first? Based on your understanding of these markets,
would you recommend a strategy for only one country or both?
India and China are both fast-growing economies that have undergone significant
growth in recent years. They both have a huge population, over one billion people, and
a sizable middle class, resulting in a greater demand for goods and services. First of all,
we will go to India over China because India is a democracy, economically more secure,
with a weak capital market delivering lower labour costs and sound infrastructure. India
and China are both fast-growing economies that have undergone significant growth in
recent years.
I selected the car industry, and KIA Motors chose Gujarat as the location for a plant in
India, with export hubs linking India to the rest of the world. Land and manpower are
abundant and moderately priced in Gujarat, and the Indian car industry is rising by
double digits. A dozen firms sell four million vehicles per year, and the figure is
increasing due to a large middle class. When families increase, so does the number of
cars they possess. General Motors is performing exceptionally well in India, and the
investment has paid off. In Chennai, Ford Motors has a factory, and both are growing
production to meet demand.
Due to low prices, quality labor, superior goods, simpler funding, and sound
infrastructure, India will become a major export center for vehicles in the coming years.
Apart from retaining a stable government in Delhi, India has an advantage over China
due to the latter's higher growth rate in the previous year. yield and return Returns are
nice in India, and foreign portfolio investors have poured more than $50 billion into the
capital market to get a decent return and yield.
As calculated in terms of purchasing power parity, India has grown to become the
world's third-largest economy. Both economies are rising their share of global GDP,
drawing significant volumes of foreign investment, and emerging from the global
financial crisis quicker than developing countries. Each nation has done this in its own
special way. India's policy is "develop first, build later," as opposed to China's "top-
down, supply-driven" strategy.