Question

Discuss the importance of emerging economies in the global economy. Provide your discussion on the differences between the domestic business management (e.g., Pizza Hut in the U.S. market) and business management in emerging/developing economies such as China, India, and Brazil.

Answer 1

Emerging economies are such markets that are growing at a high pace towards becoming a developing or developed economy . They are moving towards better markets and better industrialization . Emerging economies usually have lower levers of per capita income and less liquidity . They are important because they will expand in future and be an important part of global trade and commerce . China was known as an emerging market many years back , before it started using a capitalist-style economy reforms . Now it’s the third biggest economy in the world after the U.S and China is main trading partner for many countries . So emerging economies are like infant economies which are growing up and will help world economy prosper someday .

Domestic business management like Pizza Hut in US operates in an already developed market where there is less scope for economies of scale , differentiation , growth , experimentation . Business management is more like a traditional manner in such economies to fight tough competition . Business management in emerging economies like China can be quite experimental . Such economies offer growth and scope for expansion through market study and experimentation .