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China and USA have the strongest economies in the globe. According to Stucki (2010), the two economies have the best business operating environments but China has better opportunities than United States of America. The Chinese government has the practical rules and elements that are supportive to the business world and practice. The political regime of china offers better grounds to undertake business ventures in the country’s economy as opposed to the American political regime. In china, the presidential term is long enough to give better room to allow the growth after introduction of a business enterprise. The political powers that china offers are far much welcoming as opposed to what the American government offers. This is because the Chinese government and opposition do offer room too many ventures that are geared to economical development. Political affiliations of both china and America do affect the business performance in a significant way (Collier & Handlin, 2009. In this case, it is critical to make sure that the ruling government is offering better operating environment. Political environment in China is stable than the American type and I would opt to partake business with the Chinese government instead.
Carey (2009) argues that United States of America is a federal constitutional republic. In USA, the head of government, the congress and the judiciary do share the powers that are reserved to the state-run administration. In addition, the USA federal government does share sovereignty with the other state governments. However, there are significant major differences between the USA political system and other developed democracies such as the Chinese type. The most critical differences includes the superior supremacy in the upper legislature house as well as the larger scope of power that is held by the national supreme court and power separation between the legislature and executive. In addition, the political regime of USA is dominated by two parties; the republican and the democrats.
The china’s political regime is a people’s congress system. This is a Chinese fundamental political system. In addition, the Chinese constitution does provide that the state power belongs to the people of china. The Chinese people’s congress plays the legislation, supervision, appointment and the removal of officials as well as the making of decisions on most important issues (Goldie & Murray, 2011).
As an entrepreneur, I would opt to venture into electrical tools manufacturing. This is because the Chinese electrical products are overtaking the global market and being part of it shall be a big option for me as a business person and “mogul”. An electrical producing organization would enable the satisfaction of the markets demands as far as the electrical are concerned. The main products shall be the bulbs, the electrical cables, mobile phones, fans, refrigerators, washing machines, air conditioners and other accessories.
Zhao (2002) argues that it is advantageous to operate in Chinese political regime because the government offers better operating environment, reasonable taxation and good labor laws that warrant supported administration of staff. In addition, the presence of law materials is protected by the Chinese government and they offer subsidized importation of critical raw materials that is encouraged by the political powerful and empowered. In addition, the political regime of china is supportive of the technologically conscious investment such as the one we are venturing into. This means that we are likely to enjoy far much amplified support for undertaking operations in china. The Chinese political regime are also advocating for investment that will enable them to become the most stable world economy. In regard to this, this investment in such regime will enable the conducive operating of the enterprise. However, china political regime is disadvantageous in that it is driven by the absolute need to see china as the greatest of world Economy which is stronger than that of USA. This means that the regime is driven by the political achievements as opposed to encouraging investments.
According to Keller (2009), the USA political regime is not at all promising. This is due to the two terms administration period by the president who shares power with the other arms off government. Power sharing means that the USA government is not able to make individual investment decisions that are essential to economical growth. Consultations must be done in any case. In addition, most USA presidents struggle to stay in office for the second term which means that the country has unstable political regime which is not supportive of industrial investments. USA has already realize saturation if electrical production and consumption, this means that the political regime takes little efforts towards the sector investments. These are the issues that disadvantage America from China. However America is advantageous in that it has a stable political economy that is dominated by two parties only. This means that the party to which one chooses to follow is dependent on the regime leadership and investments within their duration in power.
China is a country that I choose to set up the business. This is based on the assumption that there is ready cheap labor to start the business off which has significant skills and expertise desirable for smooth running of the enterprise operations such as production processes (Honyi, 2010). In addition, china is technologically developed and the enterprise will be able to get quick access to raw materials as well as ready market globally due to current assumption that china is producing quality electronics than any other nation. China is thus a better country to undertake the business of interest.
America and china are stable world economies which have promising investment opportunities but China has an upper hand. The political regime in china is practical as well as the presence of skills desired towards making the investment a success (Frey & Bytes, 2011). Thus china is better placed as far as setting up an electrical equipment manufacturing enterprise is concerned.