Asian Perspective on Globalization 2/28/2019

Asian perspective on globalization
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Contents
Introduction......................................................................................................................................2
The rise of China and India as new economic superpowers............................................................3
The economic power of China.....................................................................................................3
Globalisation................................................................................................................................4
Demographic power of India.......................................................................................................6
The workforce of India is challenging China..............................................................................7
China advantage over smaller economies in Asia.......................................................................8
Offshore Software Development Services...................................................................................9
Review of India and China............................................................................................................10
Market size.................................................................................................................................11
Financial market development...................................................................................................12
Conclusion.....................................................................................................................................13
References......................................................................................................................................14

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Introduction
The potential superpower is a state or a political and economic entity that is majorly speculated
by the country with the motive to evaluate that they have superpower or not. The aim of the
research paper is to explore more details about the rise of China and India as new economic
superpowers. This has been found that globalisation is one of the major factors that lead to the
rise in the economic superpower. In the research, this has been found that more or less every
factor is linked with the globalisation. The research paper includes research on the different
factors that can make China and India strong in terms of economic. The major factors that affect
include workforce and demographic factors that makes India equipped with some superpowers.
Further, the economy of china is strong because of its international affairs due to which it is
considered as the emerging superpower country. In the end, the review related to India and China
has been done with the help of the Global Competitiveness Report.

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The rise of China and India as new economic superpowers
The intricacies of its grand strategy influence its place across the global order. This has been
found that states have the potential to be one of the world's next superpowers; this strategy is
considered as the blueprint that helps in accomplishing the global dominance (Christensen, Fryba
and Xing 261). It is found that the United States is presently considered as the world’s
hegemonic power but with these different states possessing the potential to be the superpower in
making which majorly include BRIC countries (Brazil, China, India, and Russia) (Chun 134).
Countries like China and India are considered as the interesting cases with the motive to explore
more due to their potential to become the superpower as well as their vastly different approaches
that are present in the world affairs (Ravi 99). It has been found that international legitimacy and
reputation are considered as important aspects that are required to consider while measuring
power. India and China has pursued the strategies with the motive to accomplish the dominance
in the global order.
The economic power of China
The rise of China as a new economic superpower is possible because of the review of the
economic strength of the country. The purchasing power parity regulates the worth of a dollar for
what it can make the purchase in the allocated country. This has been found that now China has a
larger economy than the U.S (Gilley and O'Neil 185). The gap between China and the US in
terms of economy is growing which is witnessed with the fact that Chinese people has increased
buying things that make China become richer than they are today.

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(Source: Champion and Leung)
The above image reflects that GDP purchasing power parity of China GDP and U.S. GDP. The
purchasing power of China is increasing then the U.S., which is possible with the rise in the
economy of the country (Champion and Leung). This has been found that the Nominal growth of
China is also reflected fluctuations that take place. The dollars that China invests in its Belt and
Road initiative helps them to connect with the market across the world (Clarke 72). The reason
due to which the economy of China is improving is its highly motivated workers that are moving
off the land into the urban economy. The formation of the one-child policy is one of the sources
that have affected the growth of the country. In addition, the projections by the United Nations
reflect that China is able to maintain 1.4 billion populations, which is probably to decline sharply
at the beginning of 2023 (Champion and Leung).
Globalisation
The rise of India: - Globalisation performs one of the major roles in improving the economic
power of both India and China. India is considered as one of the most significant potential
counterweights to China. The previous British colony said that India was birthed with the aim of

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violence and chaos after World War II. The country holds that it is the second largest populated
country after China that is likely to overtake with the introduction of the “one-child policy” by
China (Klingebiel 08). India is able to register as the more stable economy with the prosperous in
nature which has helped them in reducing poverty. In addition, the rise in the globalisation has
brought ways for India to expand and develop its economy. The country welcomed direct
investments from different countries that contribute effectively to the strong Indian economy.
This growth will contribute effectively in the economy of China as it still expected to hit approx.
8.5% or even 9% in the current year. In the Chinese officials has decreased their predictions for
PRC to 7% (Bandow). New Delhi systematically reformed its policies, this has been found that
India could continuously expand that will ultimately overtake China.
The rise of China: - Globalisation has contributed in improving the economy of China due to
which it is rising with the superpowers. The country is considered as one of the world top
exporting and trading country with the export of approx. $430.3 billion worth of goods into the
US in the year 2017. In fact, this has been found that the US is a trading partner of China who
majorly received approx. 19% of all Chinese imports (Goldring). Globalisation has provided an
opportunity due to which China is able to take the solid steps that help them to form the global
associates, trying to set a relationship with some of America's earlier alliances. This has been
found that it is running an effective public relations game which shows that the country is able to
globalist world power. China's one belt and one road initiative seek to encourage the economic
growth across Asia by making the investment in dollars for the building ambitious amounts of
infrastructure with the motive to form the connection of China and the remaining world (Aybar
281).

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In addition to this, China is considered as one of the major investors that are present in the US
who owns more than $1 trillion that is approx. (about 5%) of US debt, and snapping up US-born
start-ups. This has been found that President Trump has obvious to consider the re-joining of the
Trans-Pacific Partnership (TPP) after one year of withdrawing. Thus, this clearly shows the
strategic threat that China poses to the US with the brink of a trade war.
 West wants supper power of China: - This has been found that it is not about the
exports of China that help to improve the economic growth. China is able to boost the
market that contributes in economic growth. China's economic growth has surpassed
every other country's at an average of approx. 10% every year which shows the sheer size
of its population that get associated with the emerging middle class that has given the
country unsurpassed purchasing power (Armijo, Elliott and Roberts 519). This has been
found that American companies are itching with the motive to get involved in trade and
exports of China.
Demographic power of India
Considering the view of Deloitte's in the "Voice of Asia" report, India is emerging as an
economic superpower due to which it is providing more than half surge in Asia's possible
workers over the approaching period at emerging situation when there is demography shift in the
equilibrium of control in Asia. The country is considered as a handful of South Asian countries
that majorly sits on a demographic gold mine. The country has a middle population age of
approx. 27.3 years while comparing it that of 35 years of China and approx. 47 years for Japan
(The week). The growth in the demographic factor is essential for the country as this leads to rise
in the economic growth. This has been found that with approx. 12 million people started working
every year that has increased the number of India and this will lead to the third boundless wave

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of Asian growth just after Japan and China. The country possible employees is almost set to
increase from 885 million individuals now to more than 1.08 billion people in the coming next
20 years. This has been found in the research that when India is facing the rise in working age
then the Asian nations are dealing with the issue of ageing that also leads to the growth cluster
related to the new and updated opportunities (News 18).
This has been found that ageing population might be one of the challenging factors for some of
the nations but they will also reflect some of the corporate opportunities that are faced by
nations. The rise in the ageing population will also create an impact on the spending power as
spending’s of people will increase on health and welfare of the population.
The workforce of India is challenging China
According to Deloitte LLP, India is composed to arise as the financial superpower that is
determined in the share by its young population. While on the other hand, China and other Asian
tigers age rapidly. The number of people with the age group of 65 and more in Asia will climb
from 365 million today with the motive to more than half a billion in the year 2027 which is an
accountant as the 60% of that age group globally by the year 2030 according to the report
presented by Deloitte. India will drive development after Japan and China with the possible
personnel which is set to climb from 885 million to 1.08 billion people in the coming next 20
years (Heath).
In the opinion of Anis Chakravarty, India will account for more than half of the rise in the
workforce that is present in Asia in the near future. The workers will be more trained and
educated while comparing it with the existing Indian workforce. The rise in the workforce of
India will lead to a rise in the economic support of the country.

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(Source: Heath)
The graphical presentation given above shows that the population of China is increasing but the
rise in the population of India is giving a tough challenge to China. This also shows that there is
a threat that China might lose its rank as one of the most populous nations.
China advantage over smaller economies in Asia
China has an advantage over the other small economies that are present in Asia. The country
needs higher profile victories with the motive to attain a noticeable edge as it strives for the
stature of being a superpower (Champion). This opportunity might be found by China due to
improved trade relations with the U.S. and with Trans-pacific partnership that is possible due to
the rise in globalisation. U.S. president Donald Trump take out from the agreement in the month
of January 2017, which leads to the gap for the market leader, which leads to dictate the terms
majorly either existing as well as new multinational trade deals. If China will grab the
opportunity then they will able to maintain the status of developed economies. In Indian, this has

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been found that there is the presence of large and stable economy but it is challenged with
transitioning traditional economic strategies to the level of the different modern sectors (Murphy
535).
The country is lacking behind China in terms of the trade and investment done by them. Thus,
this is very clear with the fact that India will not be able to maintain the same position as China
as it is involved in the trans-pacific partnership. However, this has been found that India is
focusing on the improvement in the export market as it is considered as the economic strategy
(Hu and Johnson). This has been found that cast system is present in India due to which it has
extensive economic implications, this makes the economy of the country tied in the rigid social
movement, which is one of the emerging challenges for the modernisation of India. Furthermore,
India has an opportunity due to which the country has enjoyed friendly relations with the other
powers in the past few years. The country is majorly focused directly on cultivating the powerful
partners but it failed to achieve the relationship. These relationships are maintained by China
with the motive of economic strength. Presently, the company has a relationship with WTO
(World trade organisation that lends to the improvement in the economic development and
reinforcing their position as market leader.
Offshore Software Development Services
The rise in the growth of India indicates that India is becoming superpower majorly for the
Offshore Software development services across the world. The rise in the demand and improving
the image of the country in terms of IT Outsourcing service that helps in developing economic
power.

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The economy of the country has developed an average of approximately 6% during the past
decade and somewhere approx. 8% annual in the coming 3 years. In addition, India country has
developed its IT services for which they are being demanded by most of the countries across the
world. Satyam, Wipro, TCS are few of the leading Indian that is a most required brand that
offering advanced technology services (Sharma 75). The rise in the technical services is making
the US, France, Russia and many other countries to form a strong relationship with India with the
motive to avail the IT services. This demand of the services helps India to attain the rise in the
economy as the country will provide the services. The demand has increased due to the rise in
globalisation that has provided the opportunity to India. This shows that globalisation has
affected the positively to the countries.
In the research, this has been found that China is giving the competition to India when it comes
to the IT outsourcing services. The country has its specialization for the computer hardware
industry but not in the offshoring software across the world. This has been found that the growth
of India and China is considered remarkable. In the software industry, it will be difficult for a
country like China to beat the services of India. In addition, India is considered as the hub
country for IT services (Bahl 152). A country like Pune, Bangalore, Ahmedabad, and some
others are considered as the hub for the IT companies who offer different offshoring services.
This offshoring software development services are increasing the opportunity for India not only
form the long-term relationships but it also improving the economy. The offshoring provides the
opportunity to company with the motive to attain high GDP, high market size and improvement
in financial market development. Thus, this clearly shows that India is emerging as the new
economic superpower.

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Review of India and China
This was found that there is no such reason due to which Indian cannot accomplish double-digit
growth rates per annum and join China as an Asian superpower. The below given is the global
competitiveness results of India and China which are witnessed with the help of graph.
(Source: Vanham)
Market size
The market size of both India and China is considered as one of the major elements that lead to
the superpowers of the company. India is already considered as the superpower country when it
comes to inner demand. Considering the Global Competitiveness Report, this has been found
that India has a 3rd major market size, which is almost in arrears China and US but definitely, it,
is ahead of the other local influences of the economy like Japan, Germany, and Brazil. However,

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this has been found that Indian have some gathering up to do if it requirements to exceed China
and the US. Both China and India have GDP that is compared considering the purchasing power
parity (PPP) of approx. $18 billion. India is still at $7.4 trillion, which is much reduced than
other countries. Further, in the opinion of the major economist like Kaushik Basu, World Bank
Chief Economist, it has been found that India's growth rates will almost particular surpass the
economy of China in the year 2015 (Vanham). The country is expecting the growth of 7.5% that
makes it first time leading company in the World Bank’s growth chart. Thus, this proves that
India and China are rising as new economic superpowers.
Financial market development
India and China are considered as the close candidates especially when it originates to the
financial market. The report shows that India is on 51st position while on other hand China is able
to maintain 54th position. This has been witnessed that in recent years both, India and China are
able to make great progress in the obtainability of the venture capital. China and India have
gathered their share in the worldwide undertaking capital. This has been witnessed by the fact
that China skipped from an average of 9% before the year 2014 to 18% in the year 2014. In the
same timeframe, India also showed the progress from 3% to 5% (Vanham).
In the month of June, this was found that total Chinese stock market capitalization stood at $ 10
billion, which makes the market of Chinese stock as second largest across the world just behind
the US (Vanham). This has been found that China has overtaken India; historically it is one of
the greatest current stock markets in the evolving world with the market capitalization to GDP
ratio. Thus, this shows the emergence of China and India with the superpowers.

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Conclusion
In the end, this can be said that in some matters, India has overtaken China and on the other side,
China has overtaken India. This has been found that both countries are emerging with economic
power. The contributors who have made the country to bring the superpower include
globalisation, demographic power that leads to the rise in the workforce of the country, which
leads to rise in economy and advantage over the smaller economies. In addition to this, the
offshore software development services, which are provided by China and India to other
countries, are discussed. All these contribute to bring the improvement in the economic
superpower that helps to beat U.S. Moreover, the review of India and China has been done in the
report with the help of the Global Competitiveness Report. This report majorly focuses on the
market size and the financial market development of India and China. This proves that both India
and China are emerging as new economic superpowers.

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