Opportunities for Global Expansion in Emerging Economies

Running head: GLOBAL BUSINESS ENVIRONMENT 1
Global Business Environment
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Institution

GLOBAL BUSINESS ENVIRONMENT 2
Global Business Environment
c. Discuss and interpret how emerging economies are presenting opportunities for global
expansion for businesses using examples to illustrate your work
Globalization has made it quite easy for business entities to extend their operations
beyond their countries’ borders. One of the areas that have become attractive to the investors is
the emerging market. Emerging market, as its name suggests, refers to a market in a country
whose economy is still growing and developing. The focus of a emerging market is to grow the
economy so as to be regarded as a developed country. There are many countries that are
currently called emerging economies. Some of them include India, China, Brazil, United Arab
Emirates, South Africa, Qatar, Mexico, Korea, Greece, and Chile. Such countries appeal to the
investors because of many reasons.
First and foremost, the emerging economies manage to create opportunities for the
investors by reforming the economy. For a very long time, most of the emerging economies have
been associated by creating unfavorable conditions that do not favor the operation of
multinationals especially the foreigners. That has been happening because of the challenges that
have been hindering such entities from operating as expected (Gosens, Lu & Coenen, 2015).
However, the emerging economies have become attractive because they have made economic,
political, and legal reforms that favor the investors. For example, in India, the government
attracts many foreign firms by levying sustainable taxes that do not burden them. At the same
time, the country has formulated laws that favor the registration and operation of the companies.
Secondly, the emerging economies have created investment opportunities to the
foreigners by increasing accessibility to finances. Initially, it was quite challenging for the

GLOBAL BUSINESS ENVIRONMENT 3
emerging economies to create room for financial acquisition by the foreign firms. There were so
many conditions that had been put on the foreign firms that had sought for funding to initiate
projects in the country. The countries are becoming more attractive because they support the
investors and protect them from unethical practices such as corruption and favoritism that have,
for a very long time, discouraged foreign investment (Meyer & Mike, 2016). Many emerging
economies nowadays give financial support and credit facilities to the investors so as to enable
them set up businesses and run them without facing serious financial problems. This has been
attracting many investors into the emerging economies.
Last, but very important, the emerging economies create investment opportunities by
creating a conducive environment that supports innovation and creativity. Most of the emerging
economies have embraced modern technological innovations in the fiddle of Information and
Communication Technology (ICT). This means that the economies support research and the
creation of new ideas that are used to run the businesses in the country. Apart from this, the
emerging economies provide the foreign firms with a large pool of human resources and the
employees (Guo, Su & Ahlstrom, 2016). Most of the emerging economies enhance trade because
the high population provide market and labor force. Market is important because it determines
the success of a business. When all these are availed, the business can succeed without having to
face challenges irrespective of the low economic status of the emerging markets.
d. Explain, using examples from your own research, how Governments use both fiscal and
monetary policies to stimulate economic activity and growth using trickledown economics
Economy is never static because it keeps on changing from time to time. The changes
occur because economy is subject to manipulation by several domestic and foreign forces. As the