Essay About Emerging Market And Developed Countries

The Emerging Market
“Emerging Market” is a relative concept; it means the country which is developing quickly both in business and social activities. Since the end of last century, some less developed countries have had a rapid increase, where the emerging market began to appear. In 1993, the U.S. former president Clinton mentioned ten countries as the main trade partners, all of which have rapidly growing economy and the greatest market potential, the most important countries being China, India, Brazil, Russia, Mexico and South Africa (Tian, 2010). In 2001, the Goldman Sachs economists put the four largest emerging countries-Brazil, Russia, India and China known as “BRICs” (Finance China, 2013). Those countries all have common features with large population, great economy potential and huge market background, therefore, the impact on world’s economy is self evident. Emerging countries have 80% of the world’s population and 40% GDP in the world, and there were only 3.6% average economic growth rate before 20 years ago, now in a short time reached 7.5% (Zhou, 2013). At present, emerging countries are rapidly increasing causing a shock to the global economic framework, and the global trade and economic core moves from developed countries to developing countries. In the first decade of this century, the emerging market makes of 6% average economic growth rate of the world, and the BRICs even reached 8%, this extends beyond the developed countries with 2.6% growth rate and 4.1% of global economic growth (Jiang, 2012). Even in 2012, the developed economics has already dropped to 1.5%, the emerging countries have reached 5.75% growth rate (Jiang, 2012). This report will focus on introducing the increase of emerging market in relation to the impact of the world economy, and this is the main purposes to write this report. In additional, under the current international environment the problems existing in emerging markets and the further development trends also will be mention in