A significant transformation of the global economy is under way, one only dimly recognized by most Americans and the Western nations. As macroeconomics and trade now loom larger than nuclear stockpiles or Cold War creed, those countries with the fastest growing economies have begun to redraft the rules of power and influence throughout the world. These nations include the large emerging and frontier markets, which most of us, particularly the West, have failed to recognize their importance for far too long. No longer we can afford to ignore these economies and how these emerging market are impacting advanced economies. The G-20 group of countries has eclipsed the G-7 group of richest nations in the world.
Advanced Economies and Emerging Markets: Prospects for Globalization is the essential guide to better understanding the leading emerging and frontier markets in the world, and the interlocking dynamics they have with the advanced economies. This book not only provides a coverage of the BRICS, the CIVETS, the MENA, and the ASEAN emerging markets, but also the main frontier markets and the so called EAGLE economies. Five researchers and international business consultants, from five different countries spanning from the West to the East, explain who these countries are, why they have burst onto the world scene, and how they will reshape the world in the 21st century, challenging the status quo of advanced economies along the way.
Furthermore, this book also explains how the macroeconomic experience of emerging and frontier economies has tended to be quite different from that of advanced economies. Compared to advanced economies, emerging markets and even more so frontier economies have tended to be much more unstable, with more severe boom/bust cycles, episodes of high inflation, and a variety of financial crises. This book discusses how the standard macroeconomic models that are used in advanced economies can be modified to help understand this experience, and how institutional and policy reforms in emerging and frontier markets may affect their future macroeconomic performance.
This book has been, therefore, broken down into 15 chapters, each addressing an important aspect of this global balance shift taking place among advanced economies and emerging markets. It provides historical data, assessments and our opinions, when appropriate, as well as reflections from our own experience, as researchers, international business consultants, and global citizens. The following is a brief breakdown of each chapter of this book:
Chapter 1: The Influence of G-7 Advanced Economies and G-20 Group, provides an overview of who the G-7 and the G-20 group of countries are, their role on today’s economic policy development and geopolitics. This chapter also discusses the challenges and current trends resulting from the inter-dynamics of these two important country group.
Chapter 2: The Counter-Influence of Emerging Markets across the Globe, describes the most recent developments of the G-20 group as they strive to be heard, not only by the G-7, but also by all international policy-setting organizations, such as the United Nations, the World Bank, and the World Trade Organization. This chapter discusses the latest trends and policies coming out of the G-20 and how it is shaping international businesses.
Chapter 3: Advanced versus Emerging Markets: Global Economic Prospects, provides an overview of the global economic prospects for these regions, not only with regards to the well known North-South trade routes, but also the strengthening South-South new trade relations.
Chapter 4: Coping with Emerging and Advanced Market Risks, provides an overview of the current risks at play on advanced economies, mostly associated with indebtness, but also monetary crises. This chapter also discusses the many challenges being dealt with by emerging and frontier markets and the risks international business professionals are exposed to on both major markets.
Chapter 5: Global Economies at War, discusses the struggle for power and influenced being fought across the globe among advanced economies and emerging markets, we the former attempts to hold on to global leadership and hegemony while the later continues to challenge the status quo with strength and at time, much wit.
Chapter 6: The Rebalance of Global Trade, continues the discussions introduced in Chapter 5, where here we see how a global trade rebalance is at play, prompting us, investors and consumers alike, to also reposition ourselves so we can take advantage of new opportunities, and career path never before presented.
Chapter 7: The IMF is Being Hit by BRICS, discuss the latest development among this leading emerging market bloc, as these nations organize to implement the first development bank to challenge the International Monetary Fund. This chapter offers analysis of the potential repercussions of this bank formation not only to the IMF and advanced economies, but also the new opportunities that it opens up to frontier markets that never had access to the infrastructure loans via IMF.
Chapter 8: CIVETS: A New Strong and Fast Emerging Market, examines the emerging economies that form the CIVETS, their strength and weaknesses, as well as there opportunities and threats.
Chapter 9: The Strength of ASEAN Economies, much as in Chapter 8, provides an overview of the ASEAN country bloc, and how they are positioning themselves amidst the global rebalance of trade.
Chapter 10: Can MENA’s Rise be Powered by BRICS?, provides an overview of the MENA countries and the influence of the BRICS economies on their rise and continues and evolving bilateral trade.
Chapter 11: Entering an Emerging Market, provides lessons learned and best practices for entering an emerging market, as well as doing business in those countries, from developing a country profile to international marketing strategies, as well as dealing with local risks.
Chapter 12: The Importance of Market Research and Business Intelligence, emphasizes the need for a thorough investigation and understanding of a given emerging market before making a decision to enter it. It provides best-case scenarios and analysis for researching a new international market.
Chapter 13: Coping with Political and Economic Risks, provides valuable information in dealing with political and economic risks as multinationals and international business professionals conduct business abroad.
Chapter 14: FCPA: Dealing with Corruption and Crime, provides an introduction to the U.S. Foreign Corrupt Practice Act, the need to understand it and comply with its regulations when conducting business abroad, covering both the individual and corporate aspects of it, as well as some criticism to it.
Chapter 15: Coping and the Global and Emerging Market Crisis, discuss the current global market crisis the world is experiencing, from advanced economies to emerging markets, and how this crisis adversely impacts each of these markets in different ways, with a distinctive set of challenges, and how one should position to cope with it, and if at all possible, take advantage of it.
We are certainly living in a very interesting time, historical times we must say. This book provides breath and depth for international business professionals to cope with the challenging macroeconomic storms taking place at advanced economies, and navigate the newly presented uncharted waters of emerging and frontier markets with a string prospects of huge financial, professional, cultural, and personal gains.
Marcus Goncalves, Summer 2014.