I found this book different from what we have seen so far, and it was really interesting and informative. The title itself is attractive and makes you read it in detail. I liked the way he makes the comparison of China and India. The author compares these two countries in different aspects, social and political way that they operate. They are so different in many aspects, but they have also many common points.
The explanation of the Indian guy in the class was very nice, learning some part of the “history”, their lifestyle from the natives touches you more. I was not really aware about the situation there.
One of the things that was strange for me, was the fact that financial statements were not trustable at all in China. The author tells that most of the domestic assets of Chinese companies were not publicly listed. Those that are listed locally are not necessarily the companies' best assets but are the results of the government's attempt to leverage domestic savings toward salvaging bankrupt state-owned enterprises. Chinese financial analysts are not independent but state owned or state controlled, as are the companies on which they issue reports. However, in India, it is quite different. It is said that as a result of a legal system derived from the common-law tradition, annual reports provide the information that Western observers expect, and familiar rules govern corporate disclosure. Government-affiliated organizations keep pace with these competing private entities. The reports are heavily analyzed, debated, and criticized in the independent business media and serve as additional checks on the micro information they publish.
As a conclusion, in my opinion it is not easy to make business in these two countries, you should be too brave to manage a lot of things, situations at the same time…
I totally agree with your opinion. If you don't have detailed and correct information about the political and economic systems In china and India,you may think that the rules of capitalist system,which are mainly used in the Western Countries, are also valid in those countries,but in fact, the situations are quite different.In China, the state still determines the main things and keeps the control in her hand.It is similar somehow to the present system in Russia and in some ex-Soviet Union Countries.On the other hand, India is a very special country and has a unique administration system which has full of complexities and uncertanities. That is why, only big international companies enter into those economies to do business and even some of them exit from there like Coca Cola did in India in 1977.
YanıtlaSil