Sources: Capell, Kerry. “IKEA: How The Swedish Retailer Became A Global Cult Brand”. BusinessWeek. 14 Nov. 2005: 96-106. Ikea. com CASE 2 CHINA AND INDIA: THE CHALLENGE AND OPPORTUNITY OVERVIEW China and India are the two nations that will transform the global economy as we now know it. China has state-of-the-art manufacturing and India is boosting its competitive edge through innovation hubs. While the United States is deciding if “Chindia” is a threat or an opportunity the massive low wage, highly educated, and forward thinking work force is transforming these two poor nations into global powerhouses.

Yet, all is not perfect. While governments and business pour mass amounts of investments into the countries there are huge obstacles to continued growth. There are social, political, and environmental challenges. Important is keeping growth at a steady pace that will eliminate the unemployment lines. Pollution and environmental challenges, political backlash, debt and currency crises, inadequate medical care, threats of epidemics, and war are continuing challenges. DISCUSSION QUESTIONS 1.

Discuss the innovation implications for the leading developed nations concerning China’s and India’s rapidly escalating capabilities. 2. Examine the collaboration potential and hurdles of greater collaboration between China and India regarding innovation and other commercial ventures. 3. What are the potential market opportunities for developed nations in China and India? 4. Evaluate the evolving balance of economic power shift from the west to the east. 5. Discuss the future competitive threats of China and India for industries in developed countries.