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Research Proposal Sample on ‘’Impact of China and India’s Expansion on the Context and Patterns of International Trade: Integration of China and India in Global Economy and how the Economies are changing the Patterns of International Trade’’


            Accordingly, there implies to the encouraging developments of India and China's economic trades as there involves rapid increases of international trade activities and now, India is enjoying the presence of positive balance of such trade collaboration with China. Aside, in the year 2004, India's total trade to China crossed ''US $13.6 billion, with Indian exports to China touching $ 7677.43 million and imports from china at US $ 5926.67'' million (Cited from, Economy Watch, Compare InfoBase Limited, 2007). Thus, there were such industry players in India feeling that there is no need to give the Chinese free ride into the domestic market early as one result of global business patterns. Then, in 1999, China had grown to become second largest economy after US in terms of growth domestic product (GDP). This growth rate can be attributed to high levels of trade as well as business investment planning and effort factors (Cited from, Economy Watch, Compare InfoBase Limited, 2007).  Ideally, strong exports growth from China has pushed China's economy to a more stable trade growth. Meanwhile, in lieu to India-China Economy as agreed to work together in energy security and in multilateral level at World Trade Organization in supporting and valuing such open and fair, as well as equitable and transparent global trade systems as agreed by the authorities. The below figure shows statistical example of trade pattern in terms of China and India depicting such export value respectively showing impact of global business assumptions of the countries.


There was concept in international trade suggesting that countries larger and proximate tend to trade more with each other. Moreover, China and India should trade extensively with each other as China is among India's most important trading partners, but the importance that India assigns to China has not been reciprocated. India does not yet figure on ten most important countries to China in terms of trade, high profile visits as benchmark for today's China-India trade is historical in the sense that the two countries shared links over the millennia (Cited from, Tarun Khanna, 2006). During 2003, for example, prime minister, Atal Bihari Vajpayee visited the White Horse Temple, in China's Henan province, one of the monuments that mark the arrival of Buddhism from India to China in third century.



            Thus, India does not figure on the imperative countries to China in terms of trade. But it also clarified that Indians had nothing to fear from the Chinese. Indian companies hardly withered away in response to the Chinese threat. Nor have the overseas ventures by Chinese have been decidedly successful. The Chinese do not reciprocate Indians' attitudes to them. That is, they don't fear Indian competition. In fact, they don't much think about India at all, compared to the time India spends agonizing over Chinese threat. To the extent that they do think about India as they focused on movies, software as well as religion – Buddhism (Cited from, Tarun Khanna, 2006).  The impact on media as there situations rising upon the rise of China and India in international trade economy, some journalists have referred to economic reforms and integration into the world economy in colorful metaphors: giants shaking off socialist slumber as well as caged in the globalized field. Thus, there warned about momentous implications of three billion fresh capitalists coming from China and India, as redefining phases of globalization process (Cited from, YALE GLOBAL ONLINE, 2005).

            China's authoritarian system of government will be economic liability regardless of implications for trade policy decisions. In the economic reform process, Chinese leadership has often made bold decisions and implemented them relatively quickly and decisively, whereas in India, reform has been halting and hesitant. Thus, in parts of India, no similar rural safety net exists for the poor and the more severe educational inequality in India makes the absorption of shocks in the industrial labor market more difficult. So the resistance to the competitive process of market reform is that much stiffer.  There can be severe pitfalls and roadblocks which they have to overcome in the near future, before they can become significant players in the international economic scene on sustained basis. (Cited from, YALE GLOBAL ONLINE, 2005). Furthermore, several innovative technologies sectors of both countries are expanding due to global trade as there is high-tech services offered and are exported on huge scale basis. Therefore, international trade processes and ways will rest upon on close collaboration with the government authority as well as business based in China and India along with core global prospective in changing the structure of such economies into a more stable context respectively.





Tarun Khanna. (2006). India Needs to Encourage Trade with China, December 6, 2006 Available:


YALE GLOBAL ONLINE (2005). Yale Center for the Study of Globalization Available:






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