4.1

Question 1

Features of emerging economies

Answer 1

-Rapid industrialisation
-Economies transitioning
-Still poverty
-Businesses struggle to access the global market

Question 2

Risks of doing business in emerging companies

Answer 2

-Political instability
-Cultural differences
-corruption

Question 3

China

Answer 3

-Population=1.42 bn
-forecast to overtake the US as the world’s largest economy
-Only 22% of the population 18 & under
-Better lit rates

Question 3

India

Answer 3

-High poverty levels
-Population 1.14 bn
-Lower labor costs than China
-Better English
-Less cultural differences
-Poor infrastructure

Question 4

Indicators of growth

Answer 4

-GDP per capita at PPP
-Education- can work more skilled growth
-Health-life expectancy increasing-gov spending more on healthcare
-Human development measures the development of a country

Question 5

Business specialisation

Answer 5

When an economy or business concentrates on a specific range of products or services

Question 6

Advantages of bus specialization

Answer 6

-Higher efficiency
-Lower cost per unit
-Lower prices
-cost advantage over competitors

Question 7

Foreign direct investment

Answer 7

Inward- foreign firm invests in assets/infrastructure in the domestic economy
-Outward- a domestic business invests into assets/infrastructure abroad

Question 8

Pros and cons to host

Answer 8

Pros
-Economic growth
-Transfer of technology
Infrastructure development
Cons
-Loss of sovereignty
-Environmental concerns

Question 9

Pros and cons for home country

Answer 9

Pros
-Access to the global market
-Return on investment
-Diversification of market share
Cons
-Job loss in the home country
-Capital outflow
-Depending on foreign markets