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To: SouthFloridaGuy who wrote (7217)	12/8/2002 7:25:04 PM
From: Lizzie Tudor	Read Replies (2) \| Respond to of 306849

BOTH India and China are the best places to invest for the future. LIG, were you around as an investor in the early 90s? Back then it was Mexico, remember the "giant sucking sound"... I mean Mexico had so much going for it... Nafta and Maquilladoras, some US companies practically moved down there. The thing is, in the end these corrupt governments are very hard to break. The best entrepreneurs feel like they will get their due and be rewarded in the US, with a reasonably fair system. Its one thing for multinationals to outsource but quite another for "the next big thing" to come from one of these countries. India for sure has some major reforming to do... China is a wildcard, they may pull it off imo. Lizzie

To: SouthFloridaGuy who wrote (7217)	12/8/2002 10:01:40 PM
From: JRI	Respond to of 306849

LIG- I think the argument is much more complex then you imply...but without spending all night here...there are an entire host of factors not accounted for in your post. Here's a couple: (1) In early 80's (or was it late 70s?), India REGRESSED and became a more closed society (Coca-Cola the obvious example)...until recently Dell didn't do much in India directly either (legal/patent protection/tax considerations)....maybe that is changing in last 5 years, but part of the NYT argument (I believe) was the marked contrast in policy during that time...I believe in the 60s and some 70s India experience some great growth and Ghandi-izm had been put on backburner. (2) It depends which entrepreneurs you are talking about. I would bet native entrepreneurs in India/China will benefit from cronyism/nepotism/nationalism advantage (a la Latin America) far more than their American/European counterparts, who will work hard, but not ultimately receive the profits on a lot of transaction. (Long story) but I went to 2 countries in Latin America with a great media idea (popular both in Europe/U.S.) and watched competition literally steal the idea/customers away from me because you can't sue in those countries/I was the gringo/and their father was somebody's cousin. My point being: the U.S., although not perfectly fair, will still be a much better playing field than China/India, and since we attract entrepreneurial talent from around the world, we should continue to reap the benefits. (until China/India establish legal protection/lack of corruption for any ol' entrepreneur from any country. 3) In India and China, you have a host of cultural/religion factors which weigh down the ultimate distribution of wealth and creating a fair system (in the long-run). We could discuss at length, but the continuing cast system in India is a big enough point there.. India and China will indeed grow fast, but likely you'll just wind up with bigger (much bigger) version of Brazil or worse. If you an outsider/foreignor, you likely have to give up 50% of your business or more (giving a local partner equity for very little value to your protect yourself). Even after all these years w/presence in China, Softie loses hundred of millions (billions?) in profits thru piracy, and look how much clout they have..