INTERNATIONAL BUSINESS.

Running head: INTERNATIONAL BUSINESS
International Business
5/13/2019

INTERNATIONAL BUSINESS 1
1.
Advanced economy is the country that has extremely industrialized economy classically with
a huge service sector. A developed nation has high GDP per capita income and assembled
infrastructure in comparison to developing economy. Examples - Japan France, United States,
Canada, Australia
Developing economy is the market that is opposite of the advanced economy. China is said to
be the developing economy, because along with highest GDP, it also has largest population.
Other examples are India, Argentina, Jordan, Hungary (Prosser, 2012)
An emerging economy is the market that is moving in the direction of becoming developed
market at fast pace. Examples – Mexico, Brazil, Indonesia
2.
Risk and Challenges for Emerging market
Risk of Foreign exchange rate – Foreign investment in bonds as well as stock will classically
provide returns in the local or host country’s currency. As the outcome, the investor has to
change this local currency into their domestic currency.
Lack of Infrastructure – It is the fact that number of emerging markets have organized local
system of distribution such as Malaysia and India. But, Russia and China are the only nations
which lack in developed and advanced system of distribution.