This house believes that.International Business will have to manage Essay

This house believes that.International Business will have to manage significant shifts in global power over the next few decad - Essay Example These developed nations hold the key to production while the emerging economies provide mainly the labor and infrastructure necessary for the investment. Technological upgradation has been a key to economic growth and the developed nations have proven this. Technology aims to create objects which are vital for human living. With new developments in research and owing to globalization, these economies like China and India have also realized the importance of technological development (Johnson & Turner, 2009, pp. 1-3). On the grounds of progress in technology it can be inferred that US reigns supreme though India and China have been investing constant efforts towards the same with China a few steps ahead. Technology is usually purchased and sold in the form of capital products incorporating machines and other systems of production. Information regarding technical and commercial aspects is subject to property related rights. In fact there are six elements connected to technology. These are â€Å"geography, culture, economy, people, business, and government† (Li-Hua, 2004, p.28). China has one of the most composite legislative and political systems and this creates hindrances for businesses. The government takes a clear role in issuing licenses and in spite of the loose ends in legislation China is encouraging towards foreign investments. Government has also issued the intellectual property rights in order to protect the â€Å"copycat reputation† of the nation. The business houses need to safeguard against â€Å"confidentiality, corruption and conflict of interest† (Ripard, 2010). India despite her colonial history has higher level of acceptance towards foreign investments. India’s regulations have been loosened and the economy opened when the country faced sudden crisis in balance of payments (Kochanek, 1974, pp. 118-119). Recently both America and India have shown their doubts regarding the products of the telecommunications sector fro m China. Experts suspect that, â€Å"India’s move to obstruct the orders from the Chinese telecommunications has kicked off a sequence of events that resulted in billions of dollars of lost revenue for global telecom market vendors and significant project delays for India’s telecom service providers† (Petrou, 2010). Chinese equipments involve a risk of security, according to Indian buyers and this might risk important information which might lead a firm to ethical problems. Even United States have raised security related issues and the senators from US requested the Obama administration to go through a submission of quotation from Huawei Technologies in China. The crucial causal factors behind the success of Chinese vendors are cheap labor, â€Å"a home-field advantage in China’s hot telecom market† and â€Å"access to an almost unlimited line of credit through government banks†. These facilities are likely to persist. (Petrou, 2010) China, especially Beijing has future plans for forming an environment which facilitates â€Å"homegrown next-generation mobile technology and electric cars†. When assistance was provided to the Chinese local producers in the form of energy resources and technologies at subsidies Beijing received the accusation of breaking free trade principles. This led to filing of a case in the WTO by Washington. China is working fast to create self reliance in the field of