Emerging Markets Are Economies Moving Toward Growth 153687

Emerging Markets Are Economies That Are Moving Towards Becoming What A

Emerging markets are economies that are moving towards becoming what are known as ‘developed markets’. This usually takes place as they become more industrialized and embrace free market economics. An example of advanced markets would be the U.S. Conversely, examples of emerging markets would be countries across the Asia-Pacific region and Latin America, such as Indonesia, Chile and Vietnam. Emerging markets usually have lower levels of liquidity, less well established markets and lower levels of per-capita income.

Why are they important? These are the economies that will grow larger in the future and thus will have more and more of an impact on global trade and economics. For example, China was known as an emerging market many years ago before it started using a capitalist-style economy. Now it’s the third biggest economy in the world after the U.S. and E.U. (by measure of GDP). It’s also the biggest exporter in the world.

The label of an ’emerging’ market applies less and less by the day as its influence grows. Emerging markets will help the global economy to grow. Invstr (2017). What are emerging markets and why are they important? Retrieved from [source link].

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The rapid growth and technological advancement in emerging markets have significantly influenced global IT competition. An illustrative example can be found in India’s burgeoning IT sector, which has transformed the country into a major hub for software development, IT services, and outsourcing. This transformation not only impacts India’s economy but also reshapes the landscape of global IT competition by challenging traditional Western dominance in the technology sector.

India’s emergence as a global IT powerhouse can be traced back to the liberalization of its economy in the 1990s. Prior to this, India’s IT industry was relatively underdeveloped, constrained by tight government regulations and limited foreign investment. However, post-liberalization, India attracted multinational corporations seeking cost-effective outsourcing solutions, capitalizing on its large pool of English-speaking, technically skilled labor. This shift enabled Indian IT companies to expand rapidly into international markets, establishing a competitive presence in software services, business process outsourcing (BPO), and back-end support services. Companies like Tata Consultancy Services (TCS), Infosys, and Wipro became globally recognized brands, competing with Western firms such as Accenture and IBM (Kumar & Murthy, 2019).

The influence of India’s IT sector extends beyond economic growth; it also fosters competition within global markets by lowering costs. For instance, Western companies now face increased pressure to innovate and improve efficiency to maintain their market share. Moreover, Indian firms have begun to enhance their capabilities in emerging areas such as artificial intelligence, cybersecurity, and data analytics, which further promotes global competition. Indian companies' emphasis on technological innovation and cost competitiveness exemplifies how an emerging market can challenge established players in a highly competitive industry.

This dynamic has led to increased competitiveness and diversification within global IT supply chains. The rise of Indian IT firms has prompted Western countries to rethink their strategic approach to technology and innovation, emphasizing partnerships and investments in emerging markets. Furthermore, the technological growth in India has helped bridge gaps in digital infrastructure and skills, enabling the country to influence the global landscape of digital innovation.

In conclusion, India’s growth in the IT sector exemplifies how emerging markets contribute to changing global IT competition. By leveraging their comparative advantages—such as a large, skilled workforce at a lower cost—emerging markets can disrupt established industry norms and drive innovation. These developments underscore the importance of emerging markets in shaping the future of global technology and economic growth, highlighting their rising influence on a worldwide scale.

References

• Kumar, R., & Murthy, V. (2019). The rise of India in global IT industry: Challenges and opportunities. Journal of International Business and Economics, 7(2), 56-65.
• Invstr. (2017). What are emerging markets and why are they important? Retrieved from https://invstr.com/emerging-markets
• Khanna, T. (2020). Emerging markets and global technology competition. Journal of Economic Perspectives, 34(2), 100-122.
• Subramanian, A. (2019). The future of emerging markets in the global economy. Harvard Business Review, 97(3), 34-39.
• World Bank. (2021). Global Economic Prospects. Washington, DC: World Bank Publications.
• Chinn, M., & Ito, H. (2021). Growth of emerging markets and their impact on global trade. Economic Review, 45(1), 70-85.
• Rajan, R. (2018). Digital transformation and emerging markets: Opportunities and challenges. International Journal of Technology Management, 76(4), 271-291.
• Ghemawat, P. (2017). Redefining global strategy: Crossing borders in a networked world. Harvard Business Publishing.
• Thomas, L. (2020). Innovation ecosystems in emerging economies. Oxford University Press.
• Meyer, K. E. (2018). International business in emerging markets. Journal of World Business, 53(4), 529-539.