Assessment by Midwestern Agricultural Firms of Doing Business in China and India

Sanjeev Agarwal
February 2002  [02-MWP 6]

China and India are two of the world's biggest countries and potentially large markets for U.S. agricultural products. This study reports the assessment by midwestern agricultural firms of doing business in the two countries. The data, collected by mail questionnaire, suggests that China posed less of a problem than did India with respect to economic and market conditions, tariff and investment barriers, and physcial and cultural barriers. On the other hand, India posed less of a problem than did China with respect to language, protection of property rights, and the legal system. Firms already doing business in these countries had more favorable comments than those with no previous experience. The study also reports results of telephone interviews with selected firms. These conversations provide a more personal account of challenges faced by firms that are testing markets in the two countries.

Keywords: business, business challenges, China, investing, India.

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