Comparative Analysis On China And India Enterprises' Foreign Direct Investment

As the two neighboring countries in Asia, China and India, which have a number of similarities in national conditions, are two of the world's fastest-growing economies. They have lately received a lot of international attention being viewed as emerging giant economies as they both play key roles at the international level. They successively began the economic reform in the late 20th century. But China has the advantage of having started economic reforms much earlier i.e. in 1979 as compared to India in 1991. In terms of integration into the global economy, the Chinese reforms have gone much further than India's have, and reaped bigger rewards. The average annual growth rate of China is about 9%, while India's is only about 5%.Nowadays Chinese and Indian government encourage more domestic enterprises to invest overseas. The overseas investment scale of China is much larger than India's. However, the consequences of China enterprises'overseas direct investment is not very ideal.This paper attaches importance to the comparison of China and India's overseas direct investment situations, and after comparing the superiority and inferiority of China-India multinational corporations, the paper puts forward some suggestions for the development of China's multinational corporations with lessons from the two countries'experience. This paper is organized in the following way. Chapter 1 focuses on the comparison of gross domestic product, import and export structure and industrial structure between China and India. Chapter 2 introduces the theory basis of overseas direct investment. Chapter 3 compares the current situations of multinational corporations of China and India. Chapter 4 compares the superiority and inferiority of China-India multinational corporations. As the conclusion of the thesis, Chapter 5 puts forward some suggestions for the development of China's multinational corporations with lessons from the two countries'experience.