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Economic implications for the United States of the rise of China and India

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A. Discuss the economic implications for the United States of the rise of China and India as significant economic powers.

b. What would you consider to be the threats or opportunities for the US and why?

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Solution Summary

Economic threats or opportunities for the US are noted.

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U.S foreign direct investment in the recent years appears to stimulate the development of these emerging economies. These nations provide many opportunities for trade and investments in different sectors including information and communication technologies, energy, chemicals, natural resources, textiles, metals, heavy engineering, consumer goods and financial services. The economic potential of India and China is such that they may become among the most dominant economies in a few decades. For example according to the Goldman Sachs report, first China and then a decade later India may overtake the US as the world's ...

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