In a global village, human resource management and organizational behavior are expected to play crucial role in the process

of internationalization of business. Globalization has its impact on people management. The management is required to cope with problems of alien cultures, unfamiliar laws, languages, attitudes, practices, competitors, managerial styles, work ethics, and so on. Human resource function such as hiring, maintaining and remunerating must acquire global perspective. To face this challenge, the management must be f lexible and proactive. By helping the best qualified people execute the company's strategy on a global scale, the management can become a source of competitive advantage for the company.

y Power distance y Masculinity vs. feminism y Uncertainty avoidance y Individualism vs. collectivism

y Long term vs. short-term orientation y Language y Cooperation y Work Group Characteristics y Motivation system

y Government policy issues y Tax policy issues y Company development issues y Company Management Capabilities issues y Communication issues y GDP issues y Long term vs. short-term orientation issues y Employment issues

India
y Corporate Income Tax: 15% y First five years of

china
y Corporate Income y y y y

profitability: 0% tax y Second five years of profitability: 50% tax (This is assumed to be 7.5%.) y Third five years of profitability: 50% of tax rate for any invested dividends that are invested back into India

Tax: 24% Tax-Incentives for hightech industries: 15% Tax Holidays for manufacturing industries: Initial two years of profitability: 0 percent tax Next three years of profitability: 50% of tax rate (This is assumed to be 12%)

As can be seen, India has introduced a tax regime that is vastly more advantageous in the Special Economic Zones than China. Another benefit of India over China with respect to locating in the Special Economic Zones is that India does not discriminate between manufacturing and services and either can offer the above incentives, which is not the case in China. (Service companies are treated less favorably in China for incentives.)

INDIA
y Indian companies can list

CHINA
y China has both the

domestically on the Bombay Stock Exchange, Asia s oldest exchange. y Bombay has US$1 trillion with 4,833 companies y Bombay is run to international standards and has tremendous stability in the quality of its companies

Shanghai and Shenzhen stock exchanges. y Shanghai has US$1.7 trillion with 849 companies y China s Securities Commission has no powers to impose punishments, which must be imposed by the courts

the government is the major stockholder of its Stateowned enterprises all these firms are not subject to independent policing and true financial analysis meaning that the value of many of these firms is suspect. This means that generally India has the more transparent economy.

INDIA

CHINA

 India is for long term profit.  China is for short term profit.  India takes so much time to make a company

successful .  China take less time to make a company successful.

India y Less educated y More employment y Developing country y Employment policy change time to time

china y More educated y Less employment y More then developing country y Employment policy doesn t change time to time

y After this we can say that there is more chance of

employment. Indian people are hard worker and always respect their boss. Competition is less than the china.

y We have to prefer Indian market for expanding the

branch because India is developing country, if we want long term profit with high risk we choose India. y If we want short term but maximum profit we have to choose Chinese market.