Emerging Country Economy Report Harvard Case Solution & Analysis

Introduction

            The four emerging markets or the countries that shall be discussed in the paper are Brazil, Russia, India and China. These four countries are considered to be among the biggest and fastest growing emerging markets in the world. The reason these countries are considered as the emerging markets because these countries basically cover more than 25% of the world’s land coverage and they also constitute 40% of the total world’s population.

            An emerging market is basically a country that has some traits, features of a developed country, but it does not meet the standards of to be considered as a developed market in the current era. The countries basically include those markets that are going to develop and transform into the largest or the most successful markets in the coming time. As per the research conducted in 2013, China and India are widely considered as those economies that shall evolve as the most successful economies in the coming time.

            Therefore, it can be said that these four countries hold the key in the market. The combined GDP of the above mentioned countries is more than $20 trillion. As per Goldman Sachs, he has predicted that the Chinese and Indian economy shall become the most dominant global suppliers in the world with respect to the service industry and also the manufacturing industry (Stiglitz, 2006).

            However, he believes, Brazil and Russia shall evolve as the major suppliers of the raw material market. Among the four countries, Brazil shall remain the only country which shall be the least productive among the four countries in terms of becoming a global manufacturer or the supplier.

            Moreover, the four countries, Brazil, Russia, India and China have also formed the acronym (BRIC) where the four countries help and support each other in different terms and methods. Moreover, as per the researchers, it is expected that by the end of 2050, the four markets or countries shall become the wealthiest economies in the world.

            Along with this, as per the reports, the number of people who will have an annual income more than the double the amount today, which is $3,000, therefore it will also increase the middle class in the four countries quite significantly.

            Moreover, the year 2025 predicts that the number of people who shall be earning more than $15,000 will rise to 200 million in these four countries. Therefore, this indicates that a huge upward direction of economic and financial growth is expected of the world fastest goring markets in the world (Bank for International Settlements, 2014)

Discussion

Economic environment of China

China since the market reforms in 1978 has planned a centrally developed economic experience with a rapid economic growth in the past two decades. The Gross Domestic Product growth has also averaged about 10 percent a year.

The economic changes in the country have been a rapid change in the recent time. As per the statistics the economic growth of the country in the past 10 years have been 9.5%, which is all set to grow at a faster pace. Moreover, the national income has also doubled in the past 10 years which represents that the economy has been one of the most rapidly growing economies in the world (James, 2011).

Political environment of China

            The politics within China basically take place within a framework of a socialist republic that has been run by a single party which is the Communist Party of China. Moreover, the leadership of the Communist Party is also stated in the Constitution of the People Republic of China. The power of the State within the People Republic of China (PRC) has been exercised through the Communist Party (China Venture Research, 2014)

Emerging Country Economy Report Case Solution

Economic environment of Brazil

            Brazil has experienced a decade of economic progress from the year 2003 to 2013. During this period, more than 26 million wee rather lifted out of the poverty levels and the income inequality also reduced during this period where the Gini Coefficient has also decreased by 6% in the year 2013 (Arnold, 2014).

            Along with this, in the past decade, the income of the lower class has increased by an average of 6.1%. The growth in income during the same period has been increased by a total of 3.5%. Moreover, the country is one of the fastest growing economies in the world where the average annual GDP of the country has been more than 5%. Brazil has transformed in the world’s sixth largest economy in the past decade (Bank for International Settlements, 2014)...........

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