Question

What makes emerging markets attractive for international business?

Answer 1

Answer:

Emerging markets are attractive to internationalizing firms as target markets, manufacturing bases, and sourcing destinations. (Cavusgil, Knight, & Riesenberger, 2012, p. 262). A)Target markets:a.i)Emerging markets have become important target markets for a wide variety of products and services. (Cavusgil, Knight, & Riesenberger, 2012, p. 263).a.ii)The middle class is growing in emerging markets indicating an increase in demand for variety of consumer products including electronics and automobiles. (Cavusgil, Knight, & Riesenberger, 2012, p. 263).a.iii)Emerging markets are outstanding targets for manufactured products and technology. (Cavusgil, Knight, & Riesenberger, 2012, p. 263).a.iv)Businesses are important targets for machinery and equipment sales in emerging markets. For example, India is a huge market for textile machinery and China for agricultural equipment. (Cavusgil, Knight, & Riesenberger, 2012, p. 263).a.v)Governments and state enterprises in emerging markets are major targets for sales of infrastructure related products and services. (Cavusgil, Knight, & Riesenberger, 2012, p. 263).B)Manufacturing bases:a.i)Emerging markets are home t