Regional / Country Studies: Emerging Economies

Question 1

What are the main features of an emerging economy?

Answer 1

Main features of an emerging economy:

• Ongoing reforms and institution-building
• Relatively large agricultural sector
• FDI inflow
• Stronger GDP growth compared to OECD countries

Question 2

In what ways has emerging economy changed the international economy?

Answer 2

Ways the emerging economy has changed the international economy:

• Bring new players into the world economy
• Open up new markets and opportunities for international business
• Intense competition - consumer benefits
• Increase efficiency
• Shift the balance in international institutions and negotiation
• Challenge the existing world economic order

Question 3

The experience of China and India demonstrates the superiority of the market over government intervention in the marketplace. Do you agree? Why?

Answer 3

I agree as the central control in China has reduced and there has been greater integration of the economy with the rest of the world. There has been a reduction of governmental role in most sectors resulting in greater autonomy for managerial decision making. The same goes for India with the dismantling of the license Raj.