THE ECONOMIC ENVIRONMENT - EMERGING ECONOMIES Flashcards
What are emerging markets
Emerging markets are economies that are undergoing a process of economic development characterised by an increase in industrialisation and living standards.
What are some common characteristics of emerging markets
Increasing average incomes and standards of living
Increasing industrial output and rates of economic growth
Institutional development (rule of law, banking sector etc)
Economic liberalisation (opening of markets)
Large population of young workers
What are some examples of emerging economies
South america
Some african countries
The middle east
South east asia
These aren’t the only countries, they’re just examples
What are some opportunioties created from emerging markets
Large yound population, increasingly wealthy
Emergence of a ‘middle class’
Demand for foreign goods
Removal of protectionist barriers
Potential ‘first mover advantage’
Outsourcing opportunities cutting costs of production
What are some threats that are created from emerging markets
Protecsionist measures on imports
Competition from low cost/ high quality producers
Legal protection - i.e. breack of copyright laws
Lower production standards than in developed markets
Volatile economies spreading risk
