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China vs. India

After analyzing the cost savings of both India and China, please give me your opinion on which country would be a better choice to manufacture our GPS product and your explanations as to why.

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In purely economic terms getting the work done in China makes more sense. And that is what most companies do, as you might have noticed looking at the products in supermarkets all over the world. I would also do the same if I had to make that choice today. I think what you can do though is mention something about how things might pan out in a slightly longer term and this will involve looking at other aspects of the working of the two Asian giants.

As you have mentioned in your post it will be a good idea to look at political risks, infrastructure, exposure of transactions, and medium- to long-term risk scenario.

The biggest difference between the two countries is China is an authoritarian state, and India is a democracy, and this has a major impact on the decision making process in the two countries. While it is easy and fast in China it is slow and cumbersome in India. Businesses do not like a slow decision making process but they all recognize that behind all the bureaucracy there are checks and balances in place and decisions once taken, in general, will not be revoked. You cannot be certain about China or any other authoritarian state in this regard. ...

Solution Summary

A China vs. India discussion is presented to assess business ventures.