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Assignment #3

The document discusses emerging markets and opportunities for foreign investors in Brazil, Russia, India, China, South Africa, and Indonesia. It notes that Brazil has significant natural resources and will likely become the fourth largest economy by 2050. Russia is a major exporter of natural gas, oil, steel, and aluminum. India has a large population of over 1 billion and high mobile phone usage rates. China encourages foreign partnerships and has become the top consumer of luxury goods. South Africa and Indonesia both have growing consumer markets and industries that could attract investors.

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Sheryar Naeem
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53 views

Assignment #3

The document discusses emerging markets and opportunities for foreign investors in Brazil, Russia, India, China, South Africa, and Indonesia. It notes that Brazil has significant natural resources and will likely become the fourth largest economy by 2050. Russia is a major exporter of natural gas, oil, steel, and aluminum. India has a large population of over 1 billion and high mobile phone usage rates. China encourages foreign partnerships and has become the top consumer of luxury goods. South Africa and Indonesia both have growing consumer markets and industries that could attract investors.

Uploaded by

Sheryar Naeem
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Marketing Management

Shaharyar Naeem
Assignment # 3
Emerging Countries

Brazil:

Resource-rich Brazil is the biggest economy in Latin America and the sixth largest in the world and
according to a study by Goldman Sachs, it will likely move into fourth place by 2050 which shows that
there is a lot more growth in the future for Brazil. The soccer world cup along with the summer Olympics
took place in Rio de Janeiro which will attract foreign investors to invest more in the events occurring at
Brazil. Since Brazil is the fifth-largest country globally in terms of digital users with about 91 million
people online this attracts foreign investors to invest in the e-commerce business of Brazil. Brazil differs
from other emerging markets by not being a full-blown democracy and doesn’t have any serious
disputes with its neighbors which makes it easy for foreign investors to invest in the country without any
sort of hesitations.

Russia:

The 1991 splintering of the Soviet Union transformed Russia’s isolated and centrally planned economy
into a globally integrated market-based economy. It is the largest exporter of natural gas, the second-
largest exporter of oil, and the third-largest exporter of steel and primary aluminum which means that
foreign investors can invest in these commodities in order to earn huge profits. Russians make heavy use
of social media, spending an average of 9.8 hours per visitor on a monthly basis, twice the world average
which means that the e-commerce business in Russia has potential to grow and foreign investors can
use this to their advantage if they invest.

India:

India’s transformation over a generation has been astonishing. Since 1990 trade barriers have been
lowered and capital markets have been liberalized which has brought in booming investment and
consumption at the same time. Investors can solely invest in India on the basis of its large population of
1.21 billion people. India has fully embraced mobile technology; mobile phone density is approximately
75% of the population which means that online presence in India is at a high rate which investors can
benefit from by investing in the e-commerce businesses. India’s ascent opens a large market for U.S. and
Western goods, about 16 million consumers in India are high earning targets of connoting statuses like
luxury cars and shiny motorbikes, followed by clothing, foods, entertainment, consumer durables and
travel. This 3 percent of population alone can be targeted by investors since it is such a high number of
consumers with such large demands.

China:

China’s 2001 entry into the world trade organization eased China’s manufacturing and investment rules
and modernized retail and logistics industries. The Chinese government encourages partnerships with
foreign companies, in part so that its firms can learn enough to become global powerhouses themselves.
Chinese consumers view luxury products as trophies of success which has made China world’s top
consumer of luxury goods, investors can benefit from China’s attraction in luxury goods and invest in
them. Burberry, whose sales in china’s are almost equal to sales in whole of Europe can also be targeted
by investors since sales are increasing and consumers are at a larger scale. Competition has been fierce
among the foreign firms as they attempt to get the upper hand in the fast-growing market. Walmart
contends with Carrefour, General Motors fights Volkswagen, and Nike battles Adidas.

South Africa:

The 2010 world cup in soccer offered a chance to reexamine economic progress in South Africa.
Research shows many African consumers seek high quality products and are brand conscious and a lot
of second-rate merchandise is also preferred by different income holders, investors can invest in these
high-quality products and second-rate merchandise in order to gain high returns. Unilever is finding
success by tailoring products for African customers. Its best-selling Motions range of shampoos and
Conditioners were especially for African Black skin and hair which is also a market in which investors
could invest. Although agriculture is the largest economic sector, telecommunications, energy,
consumer products, and health care are experiencing the fastest growth which can attract investors.

Indonesia:

Indonesia’s reputation from economic uncertainty is quickly being replaced by a profile of economic
growth. This growth has made Indonesia the fastest growing economy in the region behind India and
China. Marketers have found consumers to be very brand conscious, an important preference given
their rising income which means that investors can be attracted to invest more in brands not available in
Indonesia. With more than 20 percent of its internet users having a twitter account, Indonesia is the
fifth-most active country on the microblogging site which means that Indonesians are comfortable
buying products online and foreign investors could also be attracted by this

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