emerging markets

?
  • Created by: geogt002
  • Created on: 11-12-17 15:52

emerging markets

Advantages

  • Accesses to major new marts that are demanding multinational products and services.
  • Opportunities to extend product life cycles.
  • Growing incomes levels of the population, rising demand.
  • Cheaper production costs, e.g.land, rent and labour.
  • less regulated-less government legislation and controls on employment, health and safety,pollution,etc to help minimize costs.
  • easier planning permission
  • grants and low taxation may be available to attract foreign investment. Incentives, transfer of skills and tech.

Disadvantages

  • Low per capita income- demand may also be slow to grow and unpredictable or unstable,increasing ris and uncertainty.(i.e. Brazil).
  • Suppliers-this may be a limited number of suppliers.
  • labor skills-it may be more difficult to find skilled staff.
  • raising fiane- can be difficult as banking sysetmes are not as ddevdelpedd.
  • infrastructure- may be poor.e.g. transport and tele communications

Evaluation

characteristics of emerging markets:-go through rapid economic growth.-new market opportunities for international businesses.-low incomes per head (GDP per capita)-BRIC counties are Brazil, Russia,India and china. these are the biggest emerging markets( now south Africa has been added).-MINT countries are mexico,Indonesia,Nigeria and they are growing but thier GDP is still low.

Comments

No comments have yet been made

Similar Business Studies resources:

See all Business Studies resources »See all Economic growth resources »