Examples hong kong israel saudi arabia singapore

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Examples: Hong Kong, Israel, Saudi Arabia, Singapore, South Korea, and Taiwan have developed beyond the emerging market stage. International Business: The New Realities 10-9
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Emerging Markets as a Percent of World Total International Business: The New Realities 10-10
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GDP Growth Rates in Advanced Economies and Emerging Markets
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China: Growing Role in International Business Huge population; rapidly growing economy; Big importer Began pursuing market reforms in the late 1970s Achieved explosive economic growth, quadrupling its GDP during the succeeding 30 years China is already the world’s second-largest economy But has poor business infrastructure Among commodities, China buys one-third of the world’s coal, cotton, fish, rice, and cigarettes. It buys one-quarter of the world’s steel and one-half its pork But endures serious problems of air, water, and land pollution; Has 8 of the world’s top 10 polluted cities. International Business: The New Realities 10-12
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What Makes Emerging Markets Attractive? 1. Emerging Markets as Target Markets Many have huge middle classes, with significant income for buying electronics, cars, health care services, and countless other products. Many exhibit high economic growth rates. 2. Emerging Markets as Manufacturing Bases Home to low-wage, high-quality labor for manufacturing and assembly operations. Large reserves of raw materials and natural resources. E.g., South Africa, Brazil, Russia. International Business: The New Realities 10-13
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What Makes Emerging Markets Attractive? (cont’d) 3. Emerging Markets as Sourcing Destinations MNEs have established numerous call centers in Eastern Europe, India, the Philippines, and elsewhere. Dell and IBM outsource certain technological functions to knowledge workers in India. Intel and Microsoft have much of their programming activities performed in Bangalore, India. Investments from abroad benefit emerging markets as they lead to new jobs and production capacity, transfer of technology and linkages to the global marketplace. International Business: The New Realities 10-14
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Estimating the Potential of Emerging Markets Estimations are challenging because of peculiar economic and social environments in these countries. Limited availability and reliability of data. Market research can be very costly and less precise, as compared to the advanced economies Market potential indicators include: GDP growth rate, income distribution, commercial infrastructure, unemployment rate, consumer expenditures for discretionary items.
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Purchasing Power Parity (PPP) Adjustment to per capita GDP In relying on per capita GDP for comparison of different countries, one should use PPP exchange rates, rather than the market exchange rates.
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