International Business Context: Report and Analysis of Economies

This report delves into the international business context, examining various economic structures and their impact on businesses. It begins by categorizing countries into developed, emerging, and developing economies, highlighting the characteristics and differences of each. The report then analyzes the challenges and opportunities within emerging economies, focusing on factors like market regulations and political interventions. Furthermore, it discusses the role of family conglomerates in both developed and emerging markets, providing examples and insights into their strategic advantages and disadvantages. The report concludes by emphasizing the importance of understanding these economic dynamics for successful business operations in a globalized world. The report is a useful tool for students looking to learn about international business.

Running head: INTERNATIONAL BUSINESS CONTEXT
International Business Context
Name of the Student
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Author Note

1ECONOMIC STRUCTURE
Table of Contents
Answer 1....................................................................................................................................2
Answer 2....................................................................................................................................2
Answer 3....................................................................................................................................3
Reference....................................................................................................................................4

2ECONOMIC STRUCTURE
Answer 1
In the economic world, countries are described in three categories namely developed
country, emerging country and developing country. Countries that are developed are
characterised with low and steady economic growth, high income per capita, and
infrastructure wise and technologically advanced and high consumption, USA is an example
of developed economies. In case of developing and emerging economies, economic growth is
high but is different in growth driving factors (Hoskisson et al. 2013). Emerging economies
are characterised with improved infrastructure, growing technology and average per capita
income and depends on industrial factors for growth, on the other hand, developing countries
depend on agriculture for growth and are characterised by relatively low income and standard
of living, India and Bangladesh are examples of emerging and developing economies
respectively..
Answer 2
Emerging economies grow at a faster rate than both developed and developing
countries. They have large and progressing consumer market that makes them heaven for
investors. However, with advantages there are various disadvantages, which make emerging
economies. The challenges that exist in emerging economies are less free market activities,
government regulation hindering growth and political intervention that increases cost of
business (Zhang et al. 2013). New investments and opening new companies require stringent
government documentation that interferes with ease of business. Financial, business and
technological strategies do not bring desired outcome due to absence of free market
operations and finally political interventions and agendas makes it difficult to run business
smoothly.

3ECONOMIC STRUCTURE
Answer 3
A company that operates in a large market by investing in diversified products to
reduce risk and is privately owned by a single family is commonly known as family
conglomerate. Facebook, Walmart, Novartis and Reliance are examples of family
conglomerate. Conglomerates in developed countries are privileged than conglomerates in
emerging economies in foreign markets due to infrastructural advancement. However, in
domestic market conglomerates of emerging economies do well. In China, South Korea and
India conglomerates grew significantly and in every 18 months interval they enter into a new
market because they can use the domestic resources efficiently and face no such competition
domestically due to lack of potential companies. Hence, conglomerates help in entering a
new market in emerging economies.

4ECONOMIC STRUCTURE
Reference
Hoskisson, R.E., Wright, M., Filatotchev, I. and Peng, M.W., 2013. Emerging multinationals
from mid‐range economies: The influence of institutions and factor markets. Journal of
Management Studies, 50(7), pp.1295-1321.
Zhang, J., Jiang, C., Qu, B. and Wang, P., 2013. Market concentration, risk-taking, and bank
performance: Evidence from emerging economies. International Review of Financial
Analysis, 30, pp.149-157.