Q3 Advance economies are characterized by their per-capital income, they are highly competitive and very developed commercial infrastructure. Examples are Australia United States Canada and Japan and also some western European countries.
Companies from advance economies have a very substantial purchasing power, they have relatively small government intervention. They also have few restrictions on international trade and investment. They are home to world largest MNEs. Their inward FDI is high and trade barrier is minimal.
While Emerging markets are excellent targets for manufactured products, technology, and sophisticated technology, also oil and gas exportation are big in Russia and while agriculture is a major sector in China.
Thailand is an important manufacturing location for Japanese MNEs such as Sony, Sharp, and Mitsubishi
Dell and IBM outsource certain technological functions to knowledge workers in India.
As we know developing economies have a low income and high birth rate, they are often called underdeveloped countries or third-world. These countries living standard in very low compare to advance economies. It Government are always in debt to IMF and have debt level close to annual GDP. A lot of the porverty in African nation arise from government policies that discourage trade and investment.
A company could asses the attractiveness of an emerging and developing markets by these means:
Growth rate per capital income ,
Size of middle –class
Per capital Income
Also a mixure of potential indicatiors
A strategy a firm could use in doing business in an emerging market is get with local partners which helps gain access to the local markets, distributor and supplier.