The importance of emerging economies for business
- Created by: emilyhuffordx
- Created on: 16-12-17 13:50
The importance of emerging economies for business
- An 'emerging market' (or economy) refers to a country with relatively low incomes per head, but experiancing high rates of economic growth - 'BRIC' countries, which include Brazil, Russia, India and China, are prime examples of emerging economies - The growth rate of emerging economies are much higher than that achieved by developed economies such as the UK (2.25- 2.5 per cent) and US
- The rise of emerging markets is inextricably tied up with globalisation (result of the world becoming more interconnected), such developments have enabled BRIC economies to thrive- at the same time, domestic businesses in these emerging markets have also grown rapidly
- Other emerging economies include Turkey, Mexico, Indonesia, Taiwan, Vietnam, Iran, Argentina and Thailand
China
- The most immediately recognised of the so-called emerging markets or emerging economies
- China has received copious amounts of media coverage due to its spectacular rates of economic growth - although their growth rates has slowed down, its economy still grew by 7.3 per cent in 2014
- In 1980 the Chinese economy was about 25 per cent the size for the UK's; by 2014 it was more than twice as large
India
- India's population exceeds 1.1 billion people and the country has specialised in providing services
Brazil
- Brazil has a smaller population, but huge natural resources, notably land and minerals
- Both India and Brazil are already major economic powers
Russia
- Despite facing current economic difficulties, it is also well endowed with natural resources in the form of oil and gas
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