The Impact of Emerging Markets on the Global Economy

Emerging economies and their influence on global economic growth

Emerging economies are usually devoid of common interests because of the existing stiff competition from the world of commerce. Therefore, the continued evolution of such specific markets mainly implies that the economies which are currently emerging will form the next possible stage of the world’s economic growth (Cavusgil, Knight, Riesenberger, Rammal, & Rose, 2014).

Growth of emerging markets

In the year 2000 alone, a research conducted on emerging markets revealed that such markets could account for the world’s GDP which leveled the thirty-seven percent mark. Meanwhile, by 2013, these emerging markets could overly account for fifty percent of the GDP subject to the global economy. Even though, since most developed economies try to combat the influence from the recession, the emerging markets tend to face sluggish growth. However, economic development within the world will always succumb to the impact which emerging markets provide.

The role of BRIC nations in shaping emerging markets

The BRIC nations, the likes of China, India, Russia, and Brazil typically form the background subject to unleashing how emerging markets operate. These countries are bound to the process of maturing since the shifts emanating from various factors such as economic growth as well as demographic patterns work to their advantage (Cavusgil et al., 2014).

China’s potential dominance in the global Economic sphere

China poses an essential capability of conquering the world’s economic sphere in ten years to come. Hence, it would then get regarded a star performer as revealed through its ever dynamic commercial setup. Currently, China, an economically motivated nation, faces an economic shift which provokes the need to patronize the possible lucrative deals that get to emerge from the global consumption-driven markets. China’s enormous population unleashes the agility needed to manage its focus bound to enhancing commerce entirely. Studies have indicated that China has the capability of tripling its economic bases within a decade.

References

Cavusgil, S. T., Knight, G., Riesenberger, J. R., Rammal, H. G., & Rose, E. L. (2014).       International business. Pearson Australia.