Emerging Economies

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Business Development in Emerging Economies
Business Development in Emerging Economies


A. In your opinion, what is the future of emerging economies? Support your answer with relevant evidence. (2000 words) 3 Introduction 4 What are emerging economies 4 Future of emerging economies 5 Microeconomic approach 6 Long-term economic perspectives 7 The “Euro” perspective 8 Facts about the future 9 Forecast 11 Opinion 12 Risks for emerging markets 12 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 MNEs 15 C. How formidable is the competition
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As serial crises tripped up America and then Europe, China barely broke stride. Other big developing nations paused for breath only briefly. Investors bet that rapid growth in emerging markets was the new normal, while leaders from Beijing to Brazil lectured the world on the virtues of their state-centric economic models.
More than 80% of the world’s population lives in countries with emerging economies.

As we can see in Figure 1, the share of emerging markets in global output has increased from below 20% in the early 90’s, to more than 30% today. Considering the cost of living differences, the share of emerging economies in world GDP already exceeds 45%, which is 13 percentage points higher than in the early 90’s. According to the International Monetary Fund’s (IMF), World Economic Outlook, this share will exceed 50% in 2013.

Figure [ 1 ]: Share of emerging economies in world GDP in recent periods

While these economies are already large, they keep growing strongly. Growth in emerging economies and increased resistance to economic and financial shocks mean good news for the global economy, which can definitely rely on the dynamism of emerging economies more than it did in the past.

The residents of emerging economies’ countries benefited a lot from this rapid growth, as it led
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