EMERGING MARKETS GROWTH FUELS CONFIDENCETO CLAIM BIGGER SAY IN GLOBAL POLICY MAKING

ASSIGNMENT -1
QUESTION NO.25
EMERGING MARKETS “GROWTH FUELS CONFIDENCE TO CLAIM BIGGER SAY IN GLOBAL POLICY MAKING”.
INTRODUCTION
Emerging Markets are nations with social or business activity in the process of rapid growth and industrialisation.Emerging market is a market with a relatively short and uncertain history of open market relations and foreign investment. These markets are characteristic of a country or state that has previously centrally planned and isolated economy.Emerging markets are used to describe an economy with a GDP per capita substantially below the advanced world average and typically with a growth potential above the global average.It is an economy with low to middle per capita income. These emerging markets are considered to be fast growing economies. In emerging markets nations such as economic conditions were generally due to long standing one party political and socio – economic system ,depending on its nature and commitment to become a free market economy. The stock markets of any emerging markets tend to more volatile than more established markets. There are around 40 emerging markets in the world, with economies of china and India considered to be the largest. India ranks among the well known emerging markets in the global economic scenario.Since the economic liberalisation policies were undertaken in 1990’s emerging markets India has really proposed which has helped to boost the indian economy to a great extent. There are ten big emerging markets located in every part of the world, will change the face of global economies and politics. They are Mexico, Brazil, Argentina, South Africa, Poland, Turkey, India, Indonesia, China and South Korea. Each big emerging market is important as an individual country, but it is combined effect of the group as a whole that will have a critical impact on American interest at home and abroad. These markets are the key swing factor in the future growth of world trade and global financial stability.The emerging market countries are experiencing economic expansion that will move them from third world status that is more economically sound.
DISCUSSION
Emerging markets must have weigh to local political and social factors as it attempts to open up its economy to the world. Consider the population the emerging countries are home to over half of the world’s population. India with a population of more than 1.1 billion is evediently one of the world,s two population giants together with china. But it is also a young giant, which is still growing emerging markets accounts for almost 40% of world GDP at purchasing power party although still only 20% at market value. These markets have become one of the main engines of worlds growth, with a projected contribution of over a half of the year. Emerging countries citizens have reaped the benefits of such rapid development with higher standard of living. Over the last decades GDP per capita income has risen by 30% on average to over USD 9000 in India, the rise has been faster, with a doubling of real GDP per capita in the last ten years. The main factors behind this booming emerging market are the economic liberalisation and the perfect competition market, the high standard of living, and per capita income. To boost the emerging market India,the Govt. also taking some positive steps.The main aim is to increase the growth rate around 9%. Due to favourable emerging markets more and more industries are being set up and the customer base is also increasing.
World Market Segments
Within emerging markets there are three sub groups according to market size[population] and economic attractiveness[GNI per capita in purchasing power parity].
1.Strategic opportunity markets are the largest and most economically attractive for a multinational corporation that is looking to grow its customer base.These markets have a population over 40 million and strong real GDPgrowth.
2.Niche opportunity markets provide multinational companies with opportunities to grow their markets on a smaller scale or they may be gate ways to large nearby markets.
3.Long term opportunity markets are the least attractive markets to a multinational corporations .These markets exhibit a low standard of living.
BUSINESS CHALLENGES IN EMERGING MARKETS
The potential rewards of making a successful entry into an emerging market are considerable and analytical .Many US companies large and small have the capacity to dramatically strengthen businesses that effective strategies. Small business owners considering an enterance into one of the markets whether that enterance takes the form of opening an office or trying to sell a product. First, companies thinking about doing a business in emerging markets should recognize that such efforts are almost certainly doomed to fall if the firms affairs are a mess back home. Even if the firms domestic business is sound that provides good foundation for international expansion emerging markets present certain problems. Small business owners will be well equipped to make their mark on emerging markets provided that their products or services are desired by targeted population but as one small business owner who successfully expanded into a number of new markets. The world is moving much closer together and if you want to do business today “you had better an international person even if you are fixing skateboards on the street corners.” So the recent economic development has also put a positive impact on various sectors. There has been a significant development in agriculture, service and industrial sectors of the country.

CONCLUSION
The Emerging markets able to look forward to brighter opportunities and offer new areas of investment for foreign and developed economies,local officials in emerging markets need to consider the effect of an open economy on citizens. The process of emergence may be difficult, slow and often stagnant at times.And even though emerging markets have survived global and local challenges in the past, they had to overcome some large obstacles .So we can say that today there is most important role of developing countries in the world. As the growth rate of developing countries are increasing so their importance is also increasing in the global market. So the emerging markets are growth fuels confidence to claim bigger say in global policy making.
Submitted to: Prof. Gurdeepak Singh
Submitted by: Puneet Lakhi (MBA I-C)