The paper "Status of the Emerging Economies" is a good example of a macro and microeconomics coursework. The global economic trend witnessed in the previous years has led to the development of most countries as economies become more integrated. Such progress involved various developing nations economies rapidly converge with the economies of the well-developed countries. The main powers involved in the phenomenon was the development of the markets of the leading emerging economic countries namely, Brazil, India, China, and Russia, commonly regarded as the BRIC (Rozhnov, 2010). The main world’ s developing players were getting at per or overtaking their counterpart nations in the first world.
The review assesses the status of the emerging economies and the economic situations of such nations. Further, the article assesses the economic crisis that affected the progression of the economies of the superpowers and the reasons why the emerging economies might have surpassed the established economies. Status of the Emerging Economies China as the number one emerging nation has witnessed an increased rate of growth which has somehow seen it surpass a dwindling economic growth of the United States and other industrial countries.
Indeed various indication proved that China was surpassing America as the biggest economy in the world. Such a perception was held by close to half of the American population (Eprints. hud. ac. uk, 2016). Strong institutions like the International Monetary Fund (IMF) whose predictions have been based on the purchasing power have also affirmed that the progress of China would still continue and overtake the US as the world economic powerhouse. The economic breakthrough of China has never been kept to a halt as predicted by the author of the article.
In fact, the role of China in the political economy of the world took a re-energised level in 2005 when it began exporting capital (Jain 2006, 78). The country is regarded as the biggest foreign currency reserve holder in the world. From the 2008 global financial crisis, China has been able to account for over 35 percent of the entire global economic progress. China surpassed the United States as the biggest receiver of foreign direct investment (FDI) in the world as indicated in the 2012 financial year (Odell, 2014).
Within that time, the nation attracted 59.1 billion USD in foreign investment in comparison to the FDI flow of the US estimated at 57.4 billion USD. Consequently, such as an indication that there is still a huge attraction for investors in the larger markets of China. The argument that the growth of the economy of China is sharply dropping to 7 percent from double digits rates due to the world economic crisis which began in 2009 remains a fallacy. Currently, China has been tremendously investing in Eastern and Central Europe. The tour of Europe in 2012 which was done by Wen Jiabao enhanced economic and bilateral relations of trade between the country and Poland, Sweden, Germany and Iceland (O'neill 2001, 37).
Europeans and Chinese viewed the tour as an indicator of the willingness of China to assist in the alleviation of the European crisis of debt. Accredit line to a tune of ten billion USD was established to enable China’ s investment in infrastructure, renewable energy, and technology in Central Europe during the forum involving China, central Europe, and Poland.
List of references
Eprints.hud.ac.uk. 2016, ‘Will the growth of the BRICs cause a shift in the global balance of economic power in the 21st century?’ University of Huddersfield Repository, viewed 20 April 2017, http://eprints.hud.ac.uk/30970/
Filatotchev, I., Buck, T. and Zhukov, V. (2000). ‘Downsizing in privatized firms in Russia, Ukraine, and Belarus.' Academy of Management Journal, 43, 286-304.
Gammeltoft, P., 2008. Emerging multinationals: outward FDI from the BRICS countries. International Journal of Technology and Globalisation, 4(1), pp.5-22.
Gammeltoft, P., Barnard, H. and Madhok, A. (2010). Emerging multinationals, emerging theory: Macro- and micro-level perspectives. Journal of International Management, 16, 95-101.
Gammeltoft, P., Filatotchev, I. and Hobdari, B. (2012). ‘Emerging multinational companies and strategic fit: A contingency framework and future research agenda.' European Management Journal, 30 (3), 175-188.
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Jain, S.C. ed., 2006. Emerging economies and the transformation of international business: Brazil, Russia, India and China (BRICs). Edward Elgar Publishing. 78-101.
Keukeleire, S. and Hooijmaaijers, B., 2014, ‘The BRICS and Other Emerging Power Alliances and Multilateral Organizations in the Asia‐Pacific and the Global South: Challenges for the European Union and Its View on Multilateralism,' JCMS: Journal of Common Market Studies, 52(3), pp.582-599.
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Odell, J.S., 2014, ‘US international monetary policy: Markets, power, and ideas as sources of change,’ Princeton University Press.
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Rozhnov, K. 2010. BBC News – ‘Bric countries try to shift global balance of power, News.bbc.co.uk’ viewed 20 April 2017, http://news.bbc.co.uk/2/hi/business/8620178.stm
Sharma, R., 2012. Broken BRICs: Why the Rest stopped rising. Foreign Affairs, pp.2-7.
Stephen, M.D., 2014, ‘Rising powers, global capitalism and liberal global governance: A historical materialist account of the BRICs challenge,’ European Journal of International Relations, 20(4), pp.912-938.
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