Emerging Economies

The process of integration of economies around the world, known as globalisation, has catalysed the development of Brazil as a powerful emerging economy, through the expansion of trade and investment. Emerging countries are defined as those progressing toward becoming more advanced, through rapid growth and industrialisation. Consequently, Brazil’s rapid economic growth has secured its place in BRICS, an association of five major emerging economies, Brazil, Russia, India, China, and South Africa.

According to the World Bank, from 1993 to 1998, poverty rate has reduced by 14 percent in developing countries, similar to about 107 million people. This may result from receiving foreign investment that plays an important role in local economy growth. For example, the proportion of population living in poverty in India decreased by half in the two decades, from the 1970s to 1990s, while the number of Chinese in poverty declined by approximately 210 million during twenty-one years, from 1978 to 1999 (Healey 2008). In other words, the standard of living is improving due to the benefits of international economic activities.

The global GDP is expected to grow 3.2% in 2011. The financial crisis is no longer setting the pace for developing countries. (The World Bank Group, 2011) Developing countries are close to having regained full-capacity levels. The global crisis is slowly coming to an end. (The World Bank Group, 2011)There are many factors still playing a role in countries such as Japan with the tsunami. (The World Bank Group, 2011) However, it appears the global economy is on a upward slope.

There are faults within Zakaria’s argument. Throughout the book, assumptions are made on the likelihood of the prosperous future of the U.S. and emerging powers. These predictions are based on assumptions, therefore lack solid evidence. Zakaria builds his argument based on the assumption that America “will remain a vital, vibrant economy at the forefront of the next revolutions in science, technology and industry” (Zakaria 182). Although there are some statistics that can support this assumption, the future remains unpredictable. Furthermore, Zakaria weakens his credibility by including personal opinions in the book. Particularly the claims made towards India give insight to his bias towards India over China. Zakaria has undermined the economic

Kvint (2008) indicates that some statistics of reports on emerging market are contradictory, and this inconsistent situation even can be seen from IMF’s reports. For instance, some emerging countries like China and India are classified as emerging markets and are included in the category of developing countries. On the other hand, many of the sub-Saharan countries as emerging markets are definitely still undeveloped. Kvint (2008) suggests that the main and most important characteristic of all emerging market countries is that they are at some stage during the processes of economic maturation and development of free markets. An attractive environment for foreign investors and global trading has been created based on this characteristic. He suggests the main characteristics in his study:

An ongoing shift in global economic activity from developed to developing economies, accompanied by growth in the number of consumers in emerging markets, are the global developments that executives around the world view as the most important for business and the most positive for their own companies' profits over the next five years (Borg, 2015).

Economic growth occurs when there is a sustained increase in a country’s productive capacity over a period of time. Economic growth is often measured by an increase in real Gross Domestic Product (GDP). Brazil in recent years entered an economic slowdown, after a decade of strong growth in the 2000’s (averaging 4.4% between 2006 -11) underpinned by the global resources boom. Strong global demand for its commodity exports, combined with high commodity prices, helped brazil achieve sustained economic growth. This in

Today’s Global economy is governed by a delicate balance of variables. The addition of a new economy to the global market affects all of the pre-existing variables, bringing with it a host challenges and opportunities. Much like an initial public offering, countries may “buy -in” or develop economic agreements with the emerging market economy (EME). This often results in the country “buying-in” to the emerging economy, getting services or products at a discounted rate, while the emerging economy gets business like China and the United States. These types of agreement may result in the poorer country sacrificing its citizens’ well being, to ramp up for economic growth, like China. In the end most countries economies are interconnected for example with the United States-Canada relationship. If one country’s economy were to collapse there would be strongly adverse effects on the

There is a fierce competition for world dominance as China is poised to overtake the United States as the preeminent world power. China’s growing gross domestic product (GDP) rivals that of the US with economists predicting the Chinese economy will surpass that of the US by 2020 (Morrision, 2014; Strauss, 2013). In 2012, China had a GDP of $8.22 trillion (World Bank, 2014a) experiencing an annual average growth rate of 9.86% between 1999 and 2012 (World Bank, 2014b); whereas the US had a GDP of $16.24 trillion in 2012 (World Bank, 2014a) with an average growth rate of 2.15% from 1999 to 2012 (World Bank, 2014b). More than half of the GDP growth in the past decade can be attributed to labor income growth among college educated employees. Even during economic recession, income growth among college graduates had a positive effect on GDP (OECD, 2012).

Dicken, P. (2007). Global Shift: Mapping the Changing Contours of the World Economy, 5th. Edition. SAGE Publications

and development that would lead to a more, stable and prosperous global economy” ( MF,

Developing nations are filled with hope and aspirations of one day becoming a wealthy, dominating, and influential country. These nations can sometimes be unsafe, difficult to live in, and hard for workers to earn good compensation for their labor. On the other hand, living in a developed nation has many upsides. Developed nations are wealthy, which in turn have good infrastructure, labor and worker laws, and have less crime.

There are many significant change in the world economy occurred, marked by globalization each country has different speed of development under different political and cultural background. During this period, Such as the United States of America 's economic status from the rapid development to the decline, then move to the current stable trend. Brazil, Russia, India, China, which named ‘BRCIS’ those developing countries’ economic performances are very catch the attention in recent years. The decline and rise of these countries ' commercial economy are closely related to their political culture. Therefore, it attracted the attention of scholars and research circles.

Emerging market multinationals are companies with operation bases in at least one other country from their home bases (West, 2015). They have varied ownership models with the national or local governments often being part owners of the company as in the case of resource or energy companies. Family or private ownership is also a popular ownership model. They are also multi industrial in nature with the company operating multiple sectors in the home country and internationalizing in only one or two of these (West, 2015).

Globalization has also led to deep economic integration between the states. This integration has led the world to grow richer as a whole, an increase in trade, and an unprecedented flow of capital. The World Bank reported that between 1990 and 2015 the number of people living in extreme poverty fell below 10 percent of the global population. Thanks to the global political economy the world as a whole has become richer. While some may critique this by pointing to worsening poverty in some countries and growing inequality, they cannot disagree that lifting more and more people out of poverty each year is positive. The driving forces behind the increased global wealth are