India and china have roughly the same size population and, Microeconomics

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India and china have roughly the same size population and

Question: India and China have roughly the same size population, and although per capita GDP in China is probably somewhat larger, the difference is not very great. Labor costs are lower in India than in China, and in spite of some socialist legacy, India is further down the road toward capitalism than China. Given these facts, why do you think so many international firms prefer to invest in China rather than India?

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Microeconomics: India and china have roughly the same size population and

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