INTERNATIONAL BUSINESS

International Business in Emerging Markets

[Name of the Institute]

Introduction3

Discussion3

Why Brazil is an Emerging Economy4

Major Theories of the International Trade5

Mercantilism5

Theory of the Absolute Advantage5

The comparative advantage theory6

The factors of proportion theory6

Implementation of the Theory6

Attracting Foreign Investors7

Prospering the Industry8

Solving the Energy Concerns8

Industry Infrastructure in Brazil9

The Economic Indicators of the Brazil11

GDP growth rate of Brazil11

Inflation Rate (Consumer Price Index)11

Balance of Payments12

Trade Balance12

Foreign Direct Investment12

Unemployment Rate13

International Business in Emerging Markets

Introduction

There are no hard and fast rules that shows that there are any definition regarding of how any emerging market is supposed to grow and what are some of the economic indicators that prompts the economist t pin point that this economy is an emerging market. But when one looks at the relevant statistics, all the economies that are termed as an emerging market are showing more or less common characteristic (Cateora & Graham, 2005, p.43). The emerging markets and the economies are identified with the GDP growth that this economy is showing for last few years or so. At the same time, the investment of the rest of the world and the overall level of interest that is shown towards these economies by the rest of the world is something that is needed to be looked at. The economic data must be indicating to the fact that the GDP growth of that economy is on the higher side as well as the some of the other macroeconomic indicators. Some other indicators that are brought into the consideration are the per capita GDP income of that country and economy as well as the volume of trade and the amount of foreign reserves that is possessed by these economies.

Discussion

When the economy is growing at the faster rate, it means that the investors who have shown faith in that economy are earning some decent profits and this in turn must be promoting the overall level of economic growth. Another thing that is needed to be understood is that what is meant by the term emerging, by emerging economy, it means that it has not yet achieved that sustained period of economic stability or economic growth that it can be termed as an economic power (Collings et al., 2007, p.200). For instance, when one talks about United States of America or Germany, it becomes evident that these economies have reached the level of growth and sustainability that when there is little regression and depression, these economies are bound to recover from it rather than collapsing completely to the economic forces. At the same time, when the structure and the overall level of institutions are weak in that country, the economist are cautionary about what are the prospects of that economy, so stronger growth does not mean that this economy is in the developed phase. They still had to iron out some of the inefficiencies and some other issues that are plaguing that economy. So these are some of the things that are needed to be looked at.

Why Brazil is an Emerging Economy

It all started in 1985, when ...