The buzz words in the international trade are India and China. They jointly account for 2.4 billion people in the world i.e. about 40% of the world’s population, and an estimated future GDP growth of 8-10%.
Modern economists believe that the future of international trade lies in the economies of emerging markets like India, China, Iraq, Brazil, Africa etc. Economist Thomas L Friedman has rightly said that there are three technological events that have contributed to the growth of these economies- The Personal Computer, through which individuals could become authors of their own content in digital form. The Internet – that provides the convenience of sending information to any part of the world. Lastly Software Manufacturing – which has made everyone’s computer interoperable.
Convergence of these technologies have made economies which were once underscored as “Third World Economies” as the emerging hubs for International Business. However these economies are faced with new challenges when competing globally, such as lack of infrastructure, quality in education and corporate governance. The challenges that showcase their weakness can be an investment opportunity, thus making them viable markets worth venturing into.
Our study focuses on the significance and impact of new markets in international trade on countries, companies and also on individuals. This study will also aim at understanding the trade problems faced by them in this area and to propose ways and measures to tackle them.
Our methodology comprises of information search, observations, questionnaires and opinion interviews with industrial experts and faculties. Various statistical measures will also be used to analyse the data.
Outcome of the research:
Through this study, we intend to bring out the different roles of emerging markets in international trade. These measures are taken via questionnaires; opinion of industrial experts, faculties specialized in international business and pre dominantly from few exporters who focus on international trade. We believe that the outcome of this study will help the corporate and individuals to prepare themselves to overcome the problems they are facing in the emerging battlegrounds of international trade.
The term “emerging markets” is used to describe a nation's social or business activity in the process of rapid growth and industrialization. The Center for Knowledge Societies defines Emerging Economies as those "regions of the world that are experiencing rapid informationalization under conditions of limited or partial industrialization."
Currently, there are approximately 28 emerging markets in the world, the largest being those of India and China. Examples of other emerging markets include Argentina, Brazil, Chile, Mexico, Russia, some Arab Gulf States and South Africa.
The rapid integration into world markets by six of the largest non-OECD (Organization for Economic Co-operation and Development) economies (Brazil, Russia, India, Indonesia, China and South Africa, together known as the BRIICS) was an important component of globalisation during the past two decades. Economic incentives across world markets and in the BRIICS in particular, have been aligned more closely with countries’ and businesses’ genuine strengths.
From the past few decades, all of the BRIICS have opened their economies significantly and improved their connectedness to world trade networks. The substantial reduction of trade barriers at the border can be seen, for example, in the decline of the average applied tariffs on non-agricultural products. However, the pace varied across these countries. Dispersion of tariffs also fell, contributing to a further reduction in economic distortion.
However, in this study we focus on the emerging engines in the Asian Business – India and China, which together accounts for 2.5 billion people, China and India are...