3.7.6 Analysing emerging markets

Question 1

what is an emerging market?

Answer 1

a market in the process of rapid growth and industrialisation

Question 2

what are the features of an emerging market?

Answer 2

economies making a transition
rapid industrialisation
potential to become developed economies
faster long term economic growth
many inhabitants in poverty
gdp grows

Question 3

what is BRIC? and whoes init

Answer 3

BRIC
Brazil
Russia
India
China-
world leading economies

Question 4

What are the buisness threats from emerging markets?

Answer 4

low labour cost large pool of skilled workers
undervalued currencies makes exports cheaper
inadequate production of brands and other intellectual properties
stats subsidy of industry’s to make them more globally competitive

Question 5

what are the buisness opportunities of emerging markets?

Answer 5

growing numbers of educated middle class
cultural shift
demand for infrastructure and other products
Great potential for joint venture and acquisition
HIGHER DEMAND

Question 6

what are the threats of emerging markets

Answer 6

political instability
cultural differences
corruption and bureaucracy still an issue
low cost of production

Question 7

why are emerging economies likely to continue with high growth rates

Answer 7

urbanisation continues
industrialisation
population growth
per capita growth
improved skills
technological innovation

(People adapted to the change)