Emerging Economies

Question 1

Features

Answer 1

-large population
-high economic growth/GDP
-haven’t maxed out potential

Question 2

Growing income

Answer 2

-incomes of peoples who are residents of economy is growing
-middle class
-disposable cash
-associated with volatile/politically/not stable

Question 3

BRICS + MINT

Answer 3

Brazil Mexico
Russia Indonesia
India Nigeria
China Turkey
South Africa

Question 4

Growing middle class/GDP

Answer 4

makes emerging economies more attractive
-consumer enjoy higher income
-higher consumption
-less competition as a blank canvas
-no domestic firms in that country/first mover advantage

Question 5

Full capacity in domestic market

Answer 5

-emerging economy provides business for much higher growth

Question 6

increased economies of scale

Answer 6

-business penetrate emerging economies
-drive down unit cost

Question 7

Disadvantages

Answer 7

-volatility hard to plan long term strategies
-fluctuating exchange rated and costs
-western firms still want to sell but still risky