Emrging Markets - 10

Question 1

Emerging Market (or economy)

Answer 1

A country is becoming a developed nation often driven by relatively high economic growth and rapid expansion of trade and investment flows

Question 2

Benefits of Emerging Market for a business

Answer 2

• High rates of economic growth compared to more mature countries
• Many emerging economies see a rise in disposable income which may increase demand
• May be suitable location for international operations — either for production or selling into the domestic market

Question 3

Threats of an Emerging Market for a business

Answer 3

• Domestic businesses based in emerging economies usually actively seek expansion into developed economies which may threaten pre-existing businesses
• Increased risks of intellectual property theft
• Restrictions in the methods of doing business
• Competitive challenges from established domestic businesses