EMERGING MARKETS
An emerging market is a country that has features of a developed market but is not yet a developed market. It could be a nation with business or a lot of business activity in the process of rapid growth and industrialization. The eight largest emerging and developing economies by inflation-adjusted GDP are the BRIC countries (Brazil, Russia, India and China), and also MINT (Mexico, Indonesia, Nigeria and Turkey).
(‘Emerging Economies and the Transformation of International Business" By Subhash Chandra Jain. Edward Elgar Publishing, 2006 p.384)
ECONOMIC IMPORTANCE OF EMERGING MARKETS
Emerging markets play a huge role and important role in our economy. Each emerging market is very important as an individual country but in the end it is the combined effect of all the countries put together that will have a greater impact to the economy. It’s not every country and any country that makes it into the emerging market, they have to have or meet certain criteria’s and qualifications. To identify the BEM (Big Emerging Markets). (1997 Jeffrey E. Garten “New York Times. Chapter 1) certain criteria’s have to be met. They must have large populations, large resource bases, large markets, and are powerhouses in their regions. China, India, and Indonesia are three of the four most populous countries in the world, each of them including Brazil have large land masses and are part of BRIC(S) which stands for Brazil Russia India China South Africa. If any big ten countries are economically successful their progress or their achievements will spread to neighboring countries around them. When they experience a crisis, just like they can help their neighboring countries with progress so can they bring them down when they suffer an eco...
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...s grown rapidly over the years, it has now reached a point where some of the investors are getting the money out of them. It is estimated and calculated that in a few years CIVETS will be just the same as BRICS was when it was still successful and up and running.
SOUTH AFRICA TO STRENGTHEN ECONOMIC TIES IN AFRICA
South Africa could have done well if they chose to strengthen economic ties with other African countries. Most countries in Africa have their own natural product or good which they could have used to make better finished goods to distribute all over the world. Examples, South Africa used to have lots of gold. They could have trained people to make jewelry. Some African countries have oil, which could’ve been distributed. If South Africa chose to strengthen ties with other African countries it would benefit us more and we’d save on many resources and time.
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Brazil is both the largest and most populous country in South America. It is the 5th largest country worldwide in terms of both area (more than 8.5 Mio. km2 ) and habitants (appr. 190 million). The largest city is Sao Paulo which is simultaneously the country's capital; official language is Portuguese. According to the WorldBank classification for countries, Brazil - with a GDP of 1,5 bn. US $ in 2005 and a per capita GPD of appr. 8.500 US - can be considered as an upper middle income country and therefore classified as an industrializing country, aligned with the classification as one of the big emerging markets (BEM) next to Argentina and Mexico. Per capita income is constantly increasing as well as literacy rate (current illiteracy rate 8%). Due to its high population rate (large labour pool), its vast natural resources and its geographical position in the centre of South America, it bears enormous growth potential in the near future. Aligned with an increasing currency stability, international companies have heavily invested in Brazil during the past decade. According to CIA World Factbook, Brazil has the 11th largest PPP in 2004 worldwide and today has a well established middle income economy with wide variations in levels of development. Thus, today Brazil is South America's leading economic power and a regional leader.
South Africa was positively affected in the way that before the Dutch and British, South Africa had been split up into many different tribes, who though they were free were not united. Through the centuries of hardship South Africa came out of apartheid very strong and the ANC has maintained a popularity of 60% popularity for all the elections since 1994. Economically South Africa has blossomed and is the 2nd largest economy in all of Africa and has managed to triple its GDP even though it has been less than 30 years since it has left apartheid, established democracy and freed itself from many international sanctions. South Africa’s economy still has many issues though for it is still an underdeveloped country which suffers from lack of education, employment, and crime. Socially South Africa remains strong as it is united under one goal of making its nation once again great, and it has maintained its heritage and culture. In fact, a quick look at a South African site will show many articles and memorials, of days in the past remembering the struggle for freedom. Politically, South Africa has remained strong and united with the ANC still carrying the vast majority of the votes and uses a governmental system quite similar to ours with a separation of powers and a thriving democratic system. Luckily, political diversity has also started to appear with many other groups appearing making the most out of South Africa’s democracy and all of which pledge freedom and are led by native
Problems began for Africa when there was the “scramble for Africa. Africa was extremely divided throughout the continent. There was no nation intact. Even though they were divided into colonies, they still had no sovereignty. Since they had no form of nationalism it made it impossible to succeed as a nation. This really hurt Africa economically. If they would have been able to come together as a nation they could have pulled all of their assets together and exploit them in order to make money. By not doing this it allowed the government to exploit the people. This is why there are starving people in Africa on television. The states of Africa were created in order to make money by exporting all the various resources, whether it was slaves, minerals, or agriculture. There was much to gain by owning a chunk of land in Africa. This reason being because Africa is so rich in their resources for trade. After the race was over it left Africa severely divided.
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The county of South Africa is an economically flourishing country and probably the most advanced country on the continent of Africa. However the entire continent of Africa is probably the most undeveloped part of the world. Why is South Africa so different from the rest of its continent? Karen Politis Virk explains that it is because of South Africa’s developed economy and diverse population (Virk 40). South Africa has three main ethnic groups: African, Afrikaners, and the mixed race. The Afrikaners and mixed races have many roots to Europe and Asia giving the nation even more diversity and a culture melting pot. This set the nation apart from the rest of the African nation in which the majority of the residents are of native African descent (Virk 38). There has been no mixing of cultures or ideas in the nations as there has been in South Africa. South Africa has less problems with diseases and socio-economic problems. The reason for South Africa’s success could be because they have had such a tumultuous and interesting history compared to the rest of the continent The majority of the African continent is underdeveloped for one simple reason: diversity (Abdullkadir, 634). The rest of Africa has all had some sort of outside influence, but the influence did not stay with the people. The Boers developed differently than the rest of Africa, and the breaking point is the Boer War.
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As one of the BRIC countries, Brazil is emerging as a developing economy that is contributing to world trade with its abundance of agricultural products and natural resources. Global trading and foreign direct investment is contributing to economic growth and social progress by raising the standard of living and reducing poverty around the country; especially in Brazil.
Compared to the state of affairs during the Cold War, the world has greatly changed; indeed, the current world is quite dynamic. In recent years, the emerging markets led by China have been challenging the existing world order dominated by the Western countries. The dominance of old powers is rapidly diminishing and in fact, they are dropping down the international pecking order. Economically, the South East Asia countries account for more than half of the world Gross Domestic Product, have the highest economic growth rate (China leads with 11% growth rate p.a. closely followed by India at 9 percent) and they energy consumption is more than half the amount consumed in the world. It is predicted that in the next three decades, China and India will have attained the status of global powers and they will be competing for world leadership with the United States of America.
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As a conclusion international business best described as a Globalization. A globalizing business sector advertises viability through rivalry and the division of the work it permits individuals and economies to keep tabs on what they specialize in. It also allows people to go globally. Globalization has stretched the assets, items, administrations and markets accessible to individuals. The increasing set of reliant connections around individuals from distinctive parts of a world that happens to be separated into countries
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