The paper "International Business in Emerging Markets" is a great example of business coursework. International markets are highly becoming competitive; therefore, countries have to develop strategies that would guarantee a competitive advantage. 1981, the World Bank used the term, emerging markets, to refer to an economy with a per capita income range from low to medium. Most countries such as China, India, Brazil, and South Korea are considered to be among the emerging markets enjoying a speedy rate of economic regression and passage of various remarkable monetary reforms. Besides, the major factors defining such countries include increment in the foreign direct inflows, prosperous middle class, an increased rate of consumer spending. Typically, such countries face a significantly heightened amount of economic exposure and political risks (Venkateswaran, 2012).
Long downgraded to the second-tier position, the emerging markets coming are becoming critical forces and agents that guarantee the change of global industrial and financial landscape. These markets are distinguishable from the others through their demographic and economic capability to position themselves at the most influential and largest economies of the 21st century. Together, the emerging markets contribute about 2.8 billion of the global population, which translates to 40% and accounting for more than 25% of the global GDP.
In the essay, the research will focus on the analysis of China as the emerging market, its economic indicators, industrial structure, and theories supporting its international trade. Industrial Performance of China Globally, China’ s economy performs second after the U. S. due to its nominal GDP and purchasing power parity (PPP). Furthermore, the World Bank views the country as the fastest growing internal economy globally at a rate of 10% in the previous three decades.
China is the largest and the second largest exporter and importer of manufactured products respectively. Based on its per capita income, in 2011, the International Monetary Fund (IMF) conducted a study that positioned China in the 90th position. As an emerging and developing economy that mainly focuses on the export-oriented manufacturing sector, currency, the Purchasing Managers Index (PMI) dominates the economy of the country. The recent studies in China, the findings the economic figures reflect the efforts of the policymakers in reining in the property market with the devastating economic recovery of the country and achieving the mixed results (Zou & Fu, 2011).
Such development makes the country enjoy the attraction and attention globally as the best place of investing especially the renewable energy products. The World Bank recent classification revealed that countries with a Gross National Income per capita of $9,266 and above qualify as the high-income countries. Consequently, the emerging markets are shooting to reach such levels, which make them big and rich. For example, despite the vast resources and ever-increasing population, China still qualifies as an emerging market. Macroeconomic Indicators Since China commenced its reforms in 1978, it has been enjoying rapid growth and moderate stability in the prices of most products.
In addition, China experienced an improvement in the pace of its economic and periodic expansion, enjoying efficient and decentralized administration, quality of the labor force, elasticity supply, increasing volumes of savings, and higher levels of fixed capital investments. Another factor contributing to financial and economic performance is its large flows of direct investment from foreign investors. Over the last years, the country experienced rapid economic growth standing at 10%.
Nonetheless, in the past three-quarters of 2012, the country’ s economic growth experienced a significant decline, which to some extent further developed China’ s structural production capacity.
Jayaraman, K. (2009). Doing Business in China: A Risk Analysis. Journal of Emerging Knowledge on Emerging Markets, 1 (1), 151-162.
Pacek, N., & Thorniley, D. (2007). Emerging markets: Lessons for business success and the outlook for different markets. London: Profile Books in association with the Economist.
Prasad, S. B., & Ghauri, P. N. (2004). Global firms and emerging markets in an age of anxiety. Westport, CT: Praeger.
Singh, S. (2010). Handbook of business practices and growth in emerging markets. Hackensack, NJ: World Scientific.
Venkateswaran, N. (2012). International business management. New Delhi: New Age International.
Zou, S., & Fu, H. (2011). International marketing: Emerging markets. Bingley: Emerald.