There are tons of economically successful counties in the world. However, these days two really stick out in the economic crisis. We are in currently; those are China and India. China and India are almost surpassing the United States faster than we can even try to catch up. They are moving at such an economically booming rate. China and India are moving and surpassing the United States with trade and by getting interest from loans to other countries. China and India are huge economic threats to the United States economy.
In this research paper, I will be explaining why China and India are huge economic threats to the United States, why china and India are growing at substantially fast rates, and how they compare to one another. A government called totalitarianism also known as dictatorship runs China. First, China is one of the main exporters to the United States. Their economy is growing at an increasingly fast pace over a short period. Currently China’s economy is at a GDP of 4. 99 trillion and has grown at rate of 10% per year or more for 30 years. The capital produces $3,677.
China is the second largest exporter and the second largest importer of goods traded. China’s trade with the United States is a crucial part of their economic success. There trade is a crucial part because China makes a lot of money from exporting and making money from those exports to other countries. China also lends out billions of dollars each year to the United States. India uses a democratic system to run their country, and is also growing at an extremely fast pace. First, India is one of the top exporters in trade to countries all around the world.
Second India exports more than they are import causing them to have a profit gain in trading. India is the eleventh largest economy in the world. India’s economy grew to 8. 8% in 2010 while its GDP was at a nominal GDP of $1. 243 trillion. India has an average growth rate at 5. 8% per year for 24 years and lends out millions of dollars each year. China and India are two very similar countries; they are both major trading countries and are located in the same continent of Asia. China and India are very different in what they export and import. China imports $921.
5 billion worth of goods from foreign countries. China imports electrical and other machinery, oil and mineral, fuels, optical and medical equipments, metal ores, plastics and organic chemicals. China’s main exporters are Japan, South Korea, Taiwan, United States and Germany. (import-export. com) India imports $10. 1 billion worth of goods from the United States. India imports civilian aircrafts, diamonds, chemical fertilizers, telecommunications equipment, organic chemicals, other petroleum products, computer accessories, jewelry, medicinal equipment, and industrial machinery.
India’s main exporter is the United States. Tax %| Monthly Income (CNY)| 5%| 1 - 500| 10%| 501 - 2,000| 15%| 2,001 - 5,000| 20%| 5,001 - 20,000| 25%| 20,001 - 40,000| 30%| 40,001 - 60,000| 35%| 60,001 - 80,000| 40%| 80,001 - 100,000| 45%| 100,001 and above| Tax %| Income (INR)| 0%| 1 - 160,000| 10%| 160,001-300,000| 20%| 300,001-500,000| 30%| 500,001 and above| China’s and India both export billions of dollars worth of goods each year. What they both do differ in is India exports more than it imports in money and China imports more than exports more in money. China exports $2.
115 billion dollars in goods each year. The goods exported from China are electrical machinery, other machines, data processing equipments, apparel, textiles, iron, steel, optical equipments and, medical equipments. Their main importers are the United States, Hong Kong, Japan, South Korea and, Germany.
India exports $21. 8 billion worth of goods each year. India exports cotton household furnishing, cotton clothing, diamonds, jewelry, medicinal preparations, dental preparations, pharmaceutical preparations, semi-finished iron products, semi-finished steel products, non-cotton household furnishing, non-cotton household clothing, textile floor coverings, industrial machinery, industrial organic chemicals, generators, transformers, other accessories, zinc, sugar, steelmaking materials, precious metals, and rubber. India’s main importer is the United States. China and India are also very similar in taxes.
They both have similar systems for paying taxes. China pays the higher tax depending on how much money you make. There tax system works the same way the United States taxes people. The more money you make the more tax money you pay monthly.
In India, you do not pay as much taxes as in China. This is also similar to China’s system because they pay more taxes on income that makes more money. As you can see by the chart the more income you make the more taxes you pay. But in India what they do have is tax cuts for interest and royalty. China and India have many foreign relations with other countries. They use a lot of foreign communication, especially in trading. They trade often with the United States. China communicates with foreign countries when diplomats are entering or leaving the country and when they are trading to other countries.
India communicates with foreign countries when diplomats and when they trade with the United States. China and India have made plenty of investments. China and India have not only invested in other countries' bonds and stocks but they have had many foreign direct investments. China has made investments in buying bonds from the United States and giving loans to the United States. China has also invested in many companies like Intel and technological new creations and other new ways of finding cleaner and a brighter future in using less oil and other small companies helping the environment last longer.
Out of the 500 fortune 500 480 of them are invested into China in hoping they will find a cleaner new energy to use. India has made investments in buying bonds and from the United States and having foreign direct investments. Those investments are buying bonds from federal banks and other small business around the world. India most has its investments in the United States. The interest rate being lent out to foreign countries is 10% for China. China requires a deposit of $100 and you get $90 back. The bank keeps 10% of $100. The interest rate for loadable money is at 8.
5%. If you donate $100 the bank keeps $8. 50 and you get to keep $91. 50 back from the bank. China and India also have many things in common. They also have used a lot of energy to get ahead in the world. They use the most energy in the world. They also use the most oil in the world very closely behind the United States. As you can see by the graph India and China use the most energy. The United States also uses a lot of energy. As you can also see in the oil consumption by country graph the United States consumes the most oil followed by China and then followed by India.
China and India are starting to use alternative methods then using oil to power machines, cars and other means of transportation or technology. Some new types of technology include solar panels, nuclear energy, wind power, and hydroelectric power. China and India have also similar ideas in ways they could get more efficient, safer transportation. As of right now most people who live in China or India go everywhere by bike, train or taxi. China wants to be able to go green by an estimated 20-year period. China wants to make the trains safer and easier to use by an average person.
China also wants to be able to make longer train routes and use other methods for powering the train. India wants to be able to also have cleaner ways of traveling and an easier way of traveling. India wants to be able to use all the different types of alternative energy similar to China. Everyone uses communication to someone in China or India. If it is by phone to a foreign country or if it is by word of mouth by people talking to one another. In China and India, communication is a big thing. There is no one in China or India that does not use communication.
China is improving their phone systems to make it easier to talk to people outside of the country and make it more convenient and less cost to make a phone call out of the country. India is using more phone lines and makes making call more available to people without the harsh price. People from India talk to people from other countries just like China. India also wants to make it so that it is not only more available but also make it so that it is easy to make a call to anywhere. China and India do have one thing in difference though. The difference China and India has is the banking system they use.
As opposed to the United States China only, have four main banks. Those main banks are the Bank of China, China Construction Bank, Industrial and Commercial Bank of China and, Agricultural Bank of China. The main bank everyone uses is the Bank of China also known as the Central Bank because it is the one most people use for daily expenses and occasional use. The Central Bank formulates and implements the uses of momentary policy. The Industrial and Commercial Bank of China use to be the use to be the largest bank in China by total assets and employees, and total costumers. It was the major funder to urban areas and manufacturing sectors.
The Bank of China specializes in foreign exchange transactions and trade finance. The Construction Bank of China specializes in medium and long-term projects such as infrastructure projects and urban housing developing projects. The Agricultural bank of China provides funds for the agricultural sector of China. They also offer sales and discounted prices for tools needed for farmers to farm. India has a very direct banking system. India has 96 scheduled commercial banks, 27 public sectors banks, 31 private banks, and 38 foreign banks. India has over 53,000 branches and 49,000 ATMs in the country.
Indian bank are more public and have more availability to withdraw and deposit money. India also has made it more like the United States of where there are ATMs and banking branches everywhere. There are a number of different banks in India. There is a wide verity to choose from and each has its own benefits and downfalls. You get to choose which bank you want from 100s of different banks. You are allowed to decide if you want an old bank that has been around for years and has never gone bankrupt or you could choose a new bank that has an undecided future with better benefits.
The banking system in India is completely different from the one in China. In China there is only four government owned banks but in India it is more like the United States where you have 100’s of choices to choose from. The Indian banking system is also very complicated and complex. It is broken down in too many parts from one big government going all the way down to all the banks in India. Look at the graph above for more detail. There is also one other thing that India differs from China. India is a Democracy like the United States and China is totalitarianism, which is almost like a dictator ruling.
A democracy is a government by the people; a form of government in which the supreme power is vested in the people and exercised directly by them or by their elected agents under a free electoral system. Totalitarianism is the practice and principals of a totalitarian regime. China and India also differ that both are completely different in government. One is a Democracy and the other is totalitarianism. In a Democracy, people decide who is the leader and who is the leader’s subordinate, and the subordinate’s subordinate and so on until you get to the end.
That is like the United States system of Democracy. The people decide who is leader, who is the head of the country, who is in the government running for positions and how and why you should pick them. In a Democracy, you pick and the power is in the voter’s hands. You pick if you want the president to be a certain person or not or who can be in the government. In totalitarianism, you cannot. In totalitarianism, the dictator is picked for you. You do not have any power what so ever. There is one ruler and one ruler only. That means there is no government, no subordinates, no senates, and no backup leader.
After the leader dies, it is passed down to the son of the old leader unless there is not one. Then in that case, it is the next highest ruling official. Totalitarianism also rules the people through terror and not what the people want. Totalitarianism is all about fearing them into liking you and not revolting against the dictator. The dictator has all say in rule, no one over powers him. If someone revolts or disagrees with the government they are either killed or sent to jail for life. No one wants to revolt and the government leader still has full control in that case.
People are always in fear that they be killed for no reason. The dictator is also allowed to kill anyone they want for whatever they want. If someone does something wrong and didn’t mean to they are allowed to be killed under the dictators rule to kill him under whatever crime they think they committed. It is hard to run an economy in a totalitarianism because one person controls all the power and one wrong decision could cause the economy to fall to a non-stop end until it hits zero. It could also go really well for an economy if you know what you are doing.
If you know when to sell and when to trade, how much to put the dollar to and how much taxes should be, and when to receive imports, then you would have an ever-increasing economy. In a Democracy, it could be bad if it takes a while for a decision to be passed on whether or not they should increase or decreases inflation. They also need to decide if they need to raise the price of the exchange currency together as a whole house and not as person. They also need to decide if they need to sell more bonds buy more bonds or shred some money. It all takes time and that time costs a lot of money.
It would be more of a correct decision but you have to wait on the rest of the government to say yes before you can count the tallies and say what they should do. It could also be better if the more time you spend on it the more of a chance you will not make a mistake. If you do make a mistake though, it would not be a major one that you cannot fix with another decision. The problem could also help the economy if it decreases taxes or inflation. These are the things that could increases the economies well being or decrease it time is a pressing issue.
It also means that having a democracy means you will have the right decision but you might spend more time on one issue than other issues you think are more important as if stabilizing the economy or making sure the economy does not fall more into an abyss. This could help if you need an exact decision because the problem might not be fixable anymore after this fix so you need an exact decision or you need a quick one where this would not help at all. It takes time for a democracy to happen and take place a vote to tally up everything that needs to be counted for. In conclusion, China and India are growing economic powers.
They are growing at such an extraordinary rate the United States just cannot catch up. In the bodies, I stated that how fast China is growing, why it is growing so fast and the GDP of China’s economy. I also stated how India was growing so fast, why India is growing so fast and what the GDP of India was.
I stated that the imports are higher in China than its exports and that India’s exports were higher than its imports. I stated that the taxes were depending on how much you were paid and that the more you were paid the more taxes you paid. It is just like the United States system of taxes the more you make the more you are taxed.
What China’s and India’s communication to the outside world was like and why it needs to be improved. I also stated that China and India have different ideas in investment. China wants to move forward with greener energy while India wants to also but would not try to push it as much as China is.
I also said that the amount of money loaned out and to whom. The interest rate of the money being loaned out by the bank. The amount of energy being used by both China and India to get ahead in technology and new invention and other things like producing many different products. The money spent on new transportation and communication.
How they want to have cleaner and nicer transportation and communication. The differences in their banking structure and how they compare and finally the different types of government and what each government is and how they work and how the types of government affects the type of economy you have and how you run that economy. Also the last thing of how they compare to each other and why each one would be worse or better for each other. http://141. 211. 142. 26/freesource/zixunshow. asp? id=558 / National Economy Showed Good Momentum of Development / China Marketing Researching Co.
/ ACMR/ 7/15/2010 http://141. 211. 142. 26/freesource/zixunshow. asp? id=557 / Experts Growth over Imports Growth Rate during the First Half Year, Gross Foreign Trade Value Attained 254. 77 Billion USD in June a new Record Monthly High / China Marketing Researching co. / AMCR / 7/11/2010 http://dictionary. reference. com/browse/democracy / February 2010 http://import-export. suite101. com/article. cfm/international-trade-in-china--imports-and-exports-of-china / May 18 2010 http://economictimes. indiatimes. com/news/economy/indicators/Manufacturing-helps-GDP-grow-74-in-FY10/articleshow/5996613.
cms / June 1 2010 http://www. gdrc. org/icm/suppliers/ml. html / June 1996 http://gadfly. esva. net/democracy. html / August 2010 http://www. cbsnews. com/8301-503983_162-4864398-503983. html / March 13 2010 http://business. mapsofindia. com/india-gdp/sectorwise/india-vs-china. html / May 2010 http://www. dezshira. com/turn-key-accounting-tax-reporting. html / January 2010 http://www. dni. gov/nic/PDF_GIF_2020_Support/NIC%202020%20Final%20Paper/2020%20Project_files/China_India_risin_GDP. gif / May 2010 http://www. history-ontheweb. co. uk/concepts/totalitarianism. htm / June 2000