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Emerging Market

In: Business and Management

Submitted By mazadi
Words 858
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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 “miracle growth” moved their production process to organized manufacturing, which resulted in rapid industrialization. This transformation enabled poor countries to replicate technologies, and move farmers to manufacturing segments, allowing them to be a part of the labor force. This movement resulted in lowering unemployment, raising income and ultimately rapid growth. However, the growth...

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