Emerging markets are economies that are moving towards becoming what are known as âdeveloped marketsâ. This usually takes place as they become more industrialized and embrace free market economics. An example of advanced markets would be the U.S.
Conversely, examples of emerging markets would be countries across the Asia-Pacific region and Latin America, such as Indonesia, Chile and Vietnam. Emerging markets usually have lower levels of liquidity, less well established markets and lower levels of per-capita income.
Why are they important?
These are the economies that will grow larger in the future and thus will have more and more of an impact on global trade and economics. For example, China was known as an emerging market many years ago before it started using a capitalist-style economy. Now itâs the third biggest economy in the world after the U.S. and E.U. (by measure of GDP). Itâs also the biggest exporter in the world. The label of an âemergingâ market applies less and less by the day as itâs influence grows. Emerging markets will help the global economy to grow.
Invstr. (2017, October 27). What are emerging markets and why are they important? Retrieved from https://invstr.com/emerging-markets-important/.
Using at least 400 words, write a paper that answers the following (1) Describe an example of the effect of an emerging market on global IT competition.
Sample Solution
â Finally, our last country is Morocco. The reasoning behind this lies in the huge increase in skateboarders the country has seen in the last 5 years. This huge increase highlights potential in the country. The fact that Morocco has the 6th highest GDP in the African continent also emphasizes potential. Hence, we shall now proceed to a process of elimination to find the one best country. â Despite Nigeriaâs promising demographics, the countryâs corruption, poverty and crime mean that the consumersâ tendency to buy expensive Vans footwear and apparel is minimal. Furthermore, skateboarding and surfing, even though they are growing, are to no extent major ways of life in Nigeria, further hindering Vansâ business opportunities in Nigeria. â Vansâ main risk in Morocco is having a product offering where the price of goods exceeds the reservation price of Moroccan consumers. Therefore, even if skateboarding and surfing are increasing in this country, the first factor outweighs the latter. â Moving on to Argentina, skateboarding is only a prevailing way of life in Buenos Aires, therefore meaning that the rest of the country presents no real business opportunity for Vans. Furthermore, Red Bull© is a prevailing force in Buenos Aires and may indirectly threaten Vansâ opportunity in the capital. â On the other hand, New Zealand seems like the perfect place for Vans to set up shop. It has all 3 climates in which Vans operates in, a large and free social networking system and way of life, and a large youth population of 627,400 which is around 7%. New Zealand is a wealthy country and customers would be>
â Finally, our last country is Morocco. The reasoning behind this lies in the huge increase in skateboarders the country has seen in the last 5 years. This huge increase highlights potential in the country. The fact that Morocco has the 6th highest GDP in the African continent also emphasizes potential. Hence, we shall now proceed to a process of elimination to find the one best country. â Despite Nigeriaâs promising demographics, the countryâs corruption, poverty and crime mean that the consumersâ tendency to buy expensive Vans footwear and apparel is minimal. Furthermore, skateboarding and surfing, even though they are growing, are to no extent major ways of life in Nigeria, further hindering Vansâ business opportunities in Nigeria. â Vansâ main risk in Morocco is having a product offering where the price of goods exceeds the reservation price of Moroccan consumers. Therefore, even if skateboarding and surfing are increasing in this country, the first factor outweighs the latter. â Moving on to Argentina, skateboarding is only a prevailing way of life in Buenos Aires, therefore meaning that the rest of the country presents no real business opportunity for Vans. Furthermore, Red Bull© is a prevailing force in Buenos Aires and may indirectly threaten Vansâ opportunity in the capital. â On the other hand, New Zealand seems like the perfect place for Vans to set up shop. It has all 3 climates in which Vans operates in, a large and free social networking system and way of life, and a large youth population of 627,400 which is around 7%. New Zealand is a wealthy country and customers would be>
