...India, considered one of the biggest emerging markets in the world, is a country located in southern Asia with a population of over a billion people and its capital city being New Delhi (http://www.kwintessential.co.uk/resources/global-etiquette/india-country-profile.html.) The current leadership in India is implementing extensive changes to encourage international business in India, from privatization to the liberalization of trade (http://www.cyborlink.com/besite/india.html). India has more than fourteen major and three hundred minor languages, but the official language is English and Hindi. The Indo-Aryan ethnic group makes up seventy-two percent of India’s population, with 25 percent Dravidian and 3 percent Mongoloid and/or other (“Country Profile: India”). The market opportunity’s this country brings is enormous; the majority of this country is surrounded by water, thus making trade an appealing aspect. Furthermore, the country itself has a very abundant supply of raw materials with an improving rail system and India holds a very stable parliamentary government (“Country Profile: India”). In the following summary, I will provide you with greater understanding on how India’s business environment works and the benefits this country can bring to a company wanting to expand their foreign operations. The country of India has common laws with a written constitution ensuring the rights of individuals and property. Invasion of privacy by people is not spoken of in the...
Words: 2133 - Pages: 9
...Course Project India an Emerging Economy What proves that India is an emerging country? How did it reach this stage? What is the most active section that helps the emergence of India? Why is India going to dominate the economy? To an outsider, India might look like an entrepreneur’s nightmare, a country with over a billion people riven by paradoxes. The distribution system can be inadequate, the legal system can be intimidating, government often fails to deliver basic services and poverty is a pervasive issue that seems impossible to go away. Nevertheless, India is the perfect example of an emerging economy. Those are tough market conditions, but through innovation in the business sector first steps were made and had served to the up rise of the nation’s economy. As a member of the BRICs, i.e. Brazil, Russia, India and China, it experienced steady growth over the last decade and is now one of the major world economies. It started as a periphery country with little to no prospects and has risen up to be a semi-periphery, and maybe one day might become a core country. A core country is seen as a region were most of the positive characteristics of globalization typically occur: transnational links, modern development (i.e. higher wages, access to healthcare, adequate food/water/shelter), scientific innovation, and increasing economic prosperity. These countries also tend to be highly industrialized and have a rapidly-growing service (tertiary) sector. Generally speaking...
Words: 994 - Pages: 4
...Emerging market report 2007 Disclaimer PricewaterhouseCoopers has exercised professional care and diligence in the collection and processing of the information in this report. However, the data used in the preparation of this report (and on which the report is based) was provided by third-party sources. This report is intended to be of general interest only and does not constitute professional advice. PricewaterhouseCoopers makes no representations or warranties with respect to the accuracy of this report. PricewaterhouseCoopers shall not be liable to any user of this report or to any other person or entity for any inaccuracy of information contained in this report or for any errors or omissions in its content, regardless of the cause of such inaccuracy, error or omission. Furthermore, to the extent permitted by law, PricewaterhouseCoopers, its members, employees and agents accept no liability and disclaim all responsibility for the consequences of you or anyone else acting, or refraining from acting, in relying upon the information contained in this report or for any decision based on it, or for any consequential, special, incidental or punitive damages to any person or entity for any matter relating to this report even if advised of the possibility of such damages. The member firms of the PricewaterhouseCoopers network (www.pwc. com) provide industry-focused assurance, tax and advisory services to build public trust and enhance value for its clients and their stakeholders...
Words: 6564 - Pages: 27
...Emerging markets : Companies differ from each other. We can see it in the Chineese and Indian way of undertaking cross border M&As. Indeed, they are totally different. They are totally different. Chinese firms are searching for energy & raw materials because of their comparative advantage in manufacturing. Indian firms, which are more specialized in the high tech market are searching for innovation. Hence, Chinese M&As are located in Asia and Indian M&As are more located in Europe and the US. ABOUT THE TABLE: CHINA: Hong Kong has a major capitalist service economy, which means that it has low taxation and free trade, making business easier and more cost efficient for companies to operate ther rather than in a country with higher taxation levels and highly controlled trade. There’s also almost no import/ export control so firms may benefit from this as it makes it easier to trade goods without limitations and with lower cost. Moreiver, the fact that its M&As are located in Asia, it makes them regional and it leads of course to proximity. It is cheaper to operate closer. Ressources are there hence, they don’t need to go farther like in Europe are the US. JAPAN: United Kingdm is the top target country because of their historical relationship. India is an old English company, Indians and English people are speaking the same language, and a lot of Indian people are living in the UK. The Indian undertaking of cross border M&As is global because...
Words: 340 - Pages: 2
...resources contribute to the development of the destinations and the country itself. It is therefore no surprise that many countries make tremendous efforts to tap income from the tourism industry (Australian Government, 2004). Among these countries are India and China. In the recent years, there have been major improvements in the tourism industry of the two countries which have restructured their mode of operation in handling tourists by providing high standards of accommodation and levels of service (Bikyamasr, 2012). This essay looks at recent tourism developments and trends that have been happening in India and China and it further looks at the likely future trend of tourism in these two emerging countries. INDIA In India, the development of the tourism industry has been on the rise in the last four years. At the moment, the industry is largest service industry contributing to about 6.3% of GDP and accounting of 8.78% of total jobs (Sinha, 2004). Though the country has not fully developed its tourism industry, further availability of tourism sites and products and adequate human resources could definitely aid this industry to rise to its full potential. According to Seth, Bhat & Sushma (2010), in 2008 the tourism industry in India was at its infant stage. At that time the industry accounted for a volume of about 0.4% of the world population, far much below any other country with similar resources. From studies and comparison with other countries, the government realized that...
Words: 1783 - Pages: 8
... LG Electronics: Global strategy in emerging markets Suggested case discussion questions Q1 Explain how LG’s experience within its domestic market (South Korea) influenced how it expanded into the BRIC emerging economies All MNCs are shaped, to some degree, by their domestic markets. In LG’s case, its emergence in Korea during the decades following the Second World War strongly affected its ability to expand into the BRIC economies. The domestic Korean market was highly competitive, which helped hone its ability to enact “come from behind” approaches in other locations as it was used to having to fight its way to the top. The Korean Government placed strong emphasis on R&D within LG’s home economy, which had a double-effect on it. First, the importance of high quality R&D enabling quick and effective localization of products and services was always central to its approach to expanding its presence within the emerging economies – this runs counter to much perceived wisdom that suggests emerging economies do not have infrastructure to support such a policy. Second, it built on its experience of working with governments, which it then displayed most effectively in Brazil. The Korean Government encouraged foreign direct investment which saw LG partner with Hitachi of Japan, again, allowing it to develop valuable partnership experience that would be brought to bear on joint ventures within emerging economies. Lastly, emerging within an economically disadvantaged...
Words: 711 - Pages: 3
...3 LG Electronics: Global strategy in emerging markets Suggested case discussion questions Q1 Explain how LG’s experience within its domestic market (South Korea) influenced how it expanded into the BRIC emerging economies All MNCs are shaped, to some degree, by their domestic markets. In LG’s case, its emergence in Korea during the decades following the Second World War strongly affected its ability to expand into the BRIC economies. The domestic Korean market was highly competitive, which helped hone its ability to enact “come from behind” approaches in other locations as it was used to having to fight its way to the top. The Korean Government placed strong emphasis on R&D within LG’s home economy, which had a double-effect on it. First, the importance of high quality R&D enabling quick and effective localization of products and services was always central to its approach to expanding its presence within the emerging economies – this runs counter to much perceived wisdom that suggests emerging economies do not have infrastructure to support such a policy. Second, it built on its experience of working with governments, which it then displayed most effectively in Brazil. The Korean Government encouraged foreign direct investment which saw LG partner with Hitachi of Japan, again, allowing it to develop valuable partnership experience that would be brought to bear on joint ventures within emerging economies. Lastly, emerging within an economically disadvantaged South...
Words: 717 - Pages: 3
...Hogeschool Rotterdam | Why investors should invest in emerging markets | Counter argumentative essay | Quincy Barrow 11-7-2016 | Introduction Investors have been attracted to emerging markets since the early 2000s due to their huge growth potential during their economic transition from being a developing country into becoming a developed country. Between the year 2000 and 2011 the rapid growth in nations like Brazil, Russia, India and China - also known as the BRIC nations - has created many investment opportunities for foreign investors. Later countries like Chile, Egypt, Colombia, Qatar, United Arab Emirates, South Africa and Thailand have also been classified as emerging markets based on the MSCI benchmark. This essay touches on the reasons why investors should invest in emerging markets, which risks investors could have and how these risks could be mitigated. Emerging markets have been the drivers of the global economy According to Forbes (N.D.) over 70% of the global economic growth in the recent years has from emerging markets and their growing economies, 40% of which was estimated to have come from China and India. China’s purchasing power is expected to go beyond that of the United States by the end of 2016, despite the growth slowing down in recent years. Also, nations like China and India have had a significant contribution to the growth in the world’s GDP in the last decade, including in the 2008 credit crisis. With the up rise of countries like...
Words: 796 - Pages: 4
...In 1980, Japan’s industrial innovation over took the United States in the global market for the auto making industry. Soon after, very similar modernization was happening in the emerging market. While China and India were previously used for cheap labor or call centers, now they were coming up with new business models for production and distribution. Multinational companies in the west were investing in this market, building their R&D in developing countries, and hoping that economical and educational growth in the emerging market would help them overcome challenges. Businesses also realized that distributing to the billions of middle class people in developing nations is as beneficial as investing in the western upper class population. There was marketing potential in this region of the world, since the population of intellectuals was growing fast and consumers were getting richer and richer every day. The emerging market improved the design of the products by being smart in innovating the production process. The majority of people in China and India were happy with the new economic situation, since they were now able to use their resources, such as raw materials, in the best way possible to improve the economic situation. However, risk and unpredictability is a huge factor when entering this market. Obstacles include, but are not limited to, pollution, government intervention, laws, regulations, piracy and poverty. Dani Rodrik argues that most nations that benefited from...
Words: 858 - Pages: 4
...Disruptive Innovation in Emerging Markets: Strategies Used in India and China Ruan Y., Hang C.C., Subramanian A.M. No. 01/12 Division of Engineering & Technology Management (D-ETM) Institute of Engineering Leadership (IEL) Faculty of Engineering 1 Disruptive Innovation in Emerging Markets: Strategies Used in India and China Ruan Y., Hang C.C., Annapoornima M.S. Abstract The appropriate type of innovation which can meet the needs of the mass population in the bottom of pyramid (BOP) has not been studied much in the literature. Based on the theory of disruptive innovation, we offer 11 cases from India and China – the two biggest emerging markets to show that disruptive innovation could be an appropriate, feasible, and powerful innovation force to the companies and the economies involved. We also examined the R&D strategies used in these cases based on the framework proposed by Yu & Hang (2011) and found that 3 out of the 4 strategies commonly used in the cases from developed markets were also applied in the cases from emerging markets. In addition, we have identified 3 unique strategies which emerged from the cases from India and China, namely frugal engineering, modularization, and drastic manufacturing cost reduction. Based on the frequency of the usage of these strategies, we drew practical implications for local companies and multinational companies. Our study also provides critical insights to policy makers in emerging markets on the appropriate...
Words: 10301 - Pages: 42
...Emerging Markets Perspectives - CEO Insights Emerging Markets Perspectives - CEO Insights 1 Convergence & Differentiation What is success in a connected world?* Methodology This report was developed to provide a unique perspective from which to view the successes of companies based in emerging markets. While there are many reports providing valuable insights on how multinationals can expand into emerging markets, very few take a systematic approach towards looking at how emerging-market companies have not only fended off developed-world multinationals, but also found their own ways to expand into foreign markets. In addition to drawing on the insights of PricewaterhouseCoopers partners and associates from every market, we relied on two additional sources: 1. The 11th Annual PwC Global CEO Survey: The authoritative analysis of CEO views on business opportunities and risks of operating in an increasingly connected world. PricewaterhouseCoopers has published the survey for more than a decade, reaching out to more than 1,100 chief executive officers worldwide. The 11th Annual Global CEO Survey was launched in January 2008 at the World Economic Forum’s annual meeting in Davos. The survey data were re-analysed for this report at the country level as well as by contrasting insights from developed versus emerging markets. For the purposes of this report, we define “developed nations” to include 19 economies, including the United States and Canada, 15 in Western Europe, Japan...
Words: 17505 - Pages: 71
...Jugaad - The Indian Model of Frugal Innovation By Dr. Ajith P Abstract This paper defines frugal innovation also called as Jugaad in Indian context. The concept of jugaad innovation is introduced and explained. The uniqueness of jugaad model compared to innovation model followed by developed nations is compared and contrasted. The paper further explores the relationship between frugal engineering, design principles, design thinking, co-creation and jugaad. The benefits and implications of jugaad model of innovation for emerging nations as well as developed countries are also discussed. The paper provides better understanding of what jugaad innovation model is and how to accelerate jugaad innovations by firms in emerging markets. Jugaad can provide value for money as well as value for many. Learning to do more with less for more people should be the jugaad innovator’s dream. Key words: Jugaad, Innovation, India, Frugal Innovation, Affordability, MLM, Sustainable Solutions Introduction “Earth provides enough to satisfy every man’s need, but not every man’s greed.” - Mahatma Gandhi Peter Drucker made a very profound observation long back. According to him, as the purpose of business is to create a customer, the business enterprise has two and only two basic functions: marketing and innovation. Marketing and innovation produce results; all the rest are costs (Trout, 2006; Kotler, 2009). Strategic innovation, which is a must for all marketing firms in today’s market...
Words: 6702 - Pages: 27
...Case Study: Nestle Introduction: Nestle is one of the largest consumer packaged multi domestic corporation in the world. Nestle is Nutrition, Health and wellness company and biggest food corporation. Nestle was a Swiss company that was that was established in 1866. Nestle has about 450 factories working in 86 countries. The turn over in 2009 was approximately $95 billion. Nestle is one of the main share holders of L’Oreal which is world largest cosmetic company. The most and successful global brand of nestle is Nescafé. In 2011 Nestle was listed as no.1 by fortune global 500 as world’s most profitable corporation. Nestle has always been about nutrition, so their global marketing over the years has been based off of demographics that show the changes in living standards and life styles. The ultimate goal of the company was to be realized by the consumers as the nutrition, health and wellbeing company and delivering a competitive return to the company’s shareholders at the same time. Key Acquisition: 1990 – Nestle opened its first factory in The United States of America. 1938 – Nestle introduced a coffee band called the Nescafe – Nescafe is one of the few brands that nestle has developed all over the world. Nescafe is the most successful of all the brands that Nestle manufacture. 1974 – Nestle enters non food business, by acquiring major stakes on L’Oreal. 1998 – Nestle acquires Spillers pet food business, making it the largest pet food maker in Europe. 2002 –...
Words: 1030 - Pages: 5
...Role and Importance of BRICS Bank Sudhakar Singh PGPSM 2015 National Institute of Securities Market The ‘BRICs’ acronym, in its most common usage, derives from a report to investors by Goldman Sachs’ analyst Jim O’Neill, signaling the new dynamic that four large countries; Brazil, Russia, India and China, were bringing to the global economy at the beginning of the new millennium. A conclusion advanced in the Goldman Sachs report was that the BRICs should be included in the G7 as their macroeconomic significance increased in the decade to come. From a global investment angle, the world has moved on from there to a wider set of dynamic emerging countries, including a number of fast-growing African nations, as more developing countries find their own way to catch up on growth, resisting world recessionary tendencies (O’Neill 2001 2011). The investor’s world of emerging markets has thus expanded beyond the BRICs, even as questions are raised about the sustainability of growth in the BRICs themselves, with their structural and political challenges and their vulnerability to the uncertainties of global monetary developments. (http://mobile.opendocs.ids.ac.uk/opendocs/handle/123456789/3599#.VemUOn2MgQ0) The grouping was originally known as "BRIC" before the inclusion of South Africa in 2010. The BRICS members are all developing or newly industrialised countries, but they are distinguished by their large, fast-growing economies and significant influence on regional and...
Words: 6829 - Pages: 28
...main characteristics of emerging markets? In contemporary society, emerging Markets (EM) are increasingly becoming the most important strength that could promote the development of the world economy. Broadly speaking, the term "emerging market" has been used mainly to refer to the developing world in Asia, Africa, and Latin America. (Mody，2004). Narrowly speaking, EM refers to the stock markets of developing countries. The purpose of this article is to further analyze the characteristics of emerging markets, I am going to focus on the broad economic aspect of EM, which refers to some developing countries like Brazil, Russia, India, China. (BRICs). I would like to separate this article into three different parts. In the first part, I discuss the implications of emerging markets and why people choose to invest in them. The second part is the central theme of the article. In this part, I focus on the main characteristics of EM. After examining all the characteristics, I make a conclusion about the whole paper and put forward several suggestions for ways governments and investment companies can cooperate together to make contributions to making the markets more mature. Emerging market countries mainly contain dozens of developing countries, which are widely distributed in Asia, Latin America, and Eastern Europe; especially the BRICs (Brazil, Russia, India, China) Bruner et al (2003) classify the world economy in the following way: developed markets, emerging markets, frontier markets...
Words: 1218 - Pages: 5
