Emerging Economies

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Business Development in Emerging Economies
Business Development in Emerging Economies
Coursework
Coursework

Contents

A.In your opinion, what is the future of emerging economies? Support your answer with relevant evidence. (2000 words)3
Introduction4
What are emerging economies4
Future of emerging economies5
Microeconomic approach6
Long-term economic perspectives7
The “Euro” perspective8
Facts about the future9
Forecast11
Opinion12
Risks for emerging markets12
B.Critically discuss the factors driving the growth of emerging MNEs. Use relevant company and country examples. (500 words)14
What are MNEs (Multinational Enterprises)15
Facts about MNEs15
C.How formidable is the competition posed by emerging markets MNE's to the “Western” companies? Could it be country- or/and sector-specific? (500 words)18
References21

Business Development in Emerging Economies
Coursework Submission
A. In your opinion, what is the future of emerging economies? Support your answer with relevant evidence. (2000 words)

B. Critically discuss the factors driving the growth of emerging MNEs. Use relevant company and country examples. (500 words)

C. How formidable is the competition posed by emerging markets MNE's to the “Western” companies? Could it be country- or/and sector-specific? (500 words)

A. In your opinion, what is the future of emerging economies? Support your answer with relevant evidence. (2000 words)

Introduction

What are emerging economies

The emerging markets story began almost thirty years ago. In the mid-1980s, developed economies started on a debt-fueled consumer spending binge that lasted more than two decades. This provided an incredible opportunity for developing economies. So, emerging markets or emerging economies are nations with social or business activity in the process of rapid growth and industrialization. The seven largest emerging and developing economies by either nominal Gross Domestic Product or GDP (Purchasing Power Parity) are China, Brazil, Russia, India, Mexico, Indonesia, and Turkey. Some characteristics that define an economy as emerging are the following: * Intermediate income: its PPP per capital income is comprised between 10 % and 75 % of the average EU per capital income. * Catching-up growth: during at least the last decade, it has experienced a brisk economic growth that has narrowed the income gap with advanced economies. * Institutional transformations and economic opening: during the same period, it has undertaken profound institutional transformations which contributed to integrate it more deeply into the world economy. Hence, emerging economies appears to be a by-product of the current globalization.

Emerging markets are sought by investors for the prospect of high returns, as they often experience faster economic growth as measured by GDP. Investments in emerging markets come with much greater risk due to political instability, domestic infrastructure problems, currency volatility and limited equity opportunities (many large companies may still be "state-run" or private). Also, local stock exchanges may not offer liquid markets for outside investors. These countries do not share any common agenda, so there are various lists of emerging markets, developed by various analysts such as The Economist, the International Monetary Fund, Dow Jones etc.. If we had to make a summary list it would be the following:

 Afghanistan|  Estonia|  Lithuania|  Qatar|  Sudan|  Argentina|  Hong Kong|  Malaysia|  Romania|  Taiwan|  Bahrain|  Hungary|  Mauritius|  Russia|  Thailand|  Bangladesh|  India|  Mexico|  Saudi Arabia|  Turkey|  Brazil|  Indonesia|  Morocco|  Singapore|  Tunisia|  Bulgaria|  Iran|  Nigeria|  Slovakia|  UAE|

 Chile|  Israel|  Oman|  Slovenia|  Ukraine|
 China|  Jordan|  Pakistan|  South Africa|  Venezuela|  Colombia|  Kuwait|  Peru|...
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