The Future of Emerging Markets Analysis

Document Type:Research Paper

Subject Area:Business

Document 1

The growth of the world economy has been brought by an increase in the emerging markets. The countries make changes in their economy through implementing free market economy to improve the living standards of the citizens. Countries that have emerged in the recent years include Indonesia, Poland, Turkey and South Africa. These countries will become developed after constant growth of their economy as the trade barriers are reduced and investors can access their markets and investments. According to Mc Collum (2017), the economy of emerging markets will grow as a result of improvements in the education sector, communication, roads and machinery. Emerging nations increase their production as they adopt improved technology and manufacture their products at low costs. However, emerging markets increase their exports to meet the demands of domestic and international markets (Bekaert and Harvey ,2002).

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The Future of Indonesia Indonesia focuses on increasing its production on palm oil, coal and oil which has made them become among the emerging economies in the world. The value of the Indonesian rupiah currency is strong and their firms are performing well as their ratios are high. Investors from other countries will invest in these firms as their performance is good and they have a probability of improving as Indonesia economy is developing. The economic growth of Indonesia will result in the development of international economy as they will dominate in the decisions and activities carried out by developed nations (Berman, 2016). The Future of Poland Poland has specialized in producing and exporting automobiles resulting in the economic growth. Poland has a comparative advantage over other countries as they use advanced technology in the production of automobile at a cheaper cost as coal is the main source of energy.

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Poland is expected to become a developed nation as the economy has been growing constantly, efficiency in transport and communication facilities and the trade and investments have increased. However, the economy of Poland has been growing as a result of development of industries including the automotive and aviation (Keller, 2017). The Future of Turkey Turkey focuses on production of automotives and machinery as they are among the global exporters of vehicles and equipments. The economic growth of Turkey has been brought by development of manufacturing industries. Turkey has a comparative advantage over the other countries in the production of automobiles and machines as they use high technology to produce at low costs(Taranukha, 2017). Turkey participates in international trade resulting in improvement of its connections to other nations.

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Trade barriers are reduced leading to investors from neighboring nations funding the activities taking place in Turkey (Taranukha, 2017). Turkey will achieve financial stability as a result of constant economic growth and high gross domestic product. The gap within high and low income earners increases as the gross domestic is high (Berman, 2016). Observations and Conclusions It can be observed that emergence of markets leads to the development of nations and the world. The developing nation improves in major sectors including the economy, education, technology, transport and communication. However, unity, peace and harmony are enhanced through promotion of world trade resulting in exchange of ideas among nations. However, in countries where machines are used in production more improvements in technology will increase the rate of unemployment as much work will be done by machines and computers.

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