Comparison of Economic Institutions in China and India

Kazuyuki Motohashi

Chapter 4 in Global Business Strategy, 2015, pp 57-76 from Springer

Abstract: Abstract Global business strategies must conform to business environments in target countries and regions. As repeatedly expressed herein, while the world is becoming flatter, there still are significant barriers in the form of national borders. Chapter 2 discussed ideas and strategies to understand the differences in business environments because of these barriers. According to the CAGE distance framework, the differences in business environments due to national borders are wide-ranging and consist of cultural, administrative, geographical, and economic factors. These differences may be observed in the languages, religions, economic systems, and living standards present in each country. This chapter discusses a more fundamental principle of “institutional theory” in the context of differing business environments between nations, and examines its relationship to global strategy.

Keywords: Direct Foreign Investment; Foreign Investment; Foreign Firm; Communist Party; Global Strategy (search for similar items in EconPapers)
Date: 2015
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Persistent link: https://EconPapers.repec.org/RePEc:spr:sptchp:978-4-431-55468-4_4

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DOI: 10.1007/978-4-431-55468-4_4

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