Julien Poncet 113120220 Business in Emerging Markets Spring 2014
Mr. Nikola Zivlak
“The Emerging Giants”
Over the past decades, the term “Emerging Market” has been used in many different
discussions about our world’s global issues. This term defines economies that have some
characteristics of a developed economy but are still not there yet. The most well known are
the BRIC (Brazil, Russia, India, China), but there are many others countries that are
following them close behind, such as the Next Eleven (Bangladesh, Egypt, Indonesia, Iran,
Mexico, Nigeria, Pakistan, Philippines, South Korea, Turkey, and Vietnam) or the CIVETS
(Colombia, Indonesia, Vietnam, Egypt, Turkey and South Africa). Although all those
countries are at different stages of development, it is clear that their political and
economical influences in the world will keep increasing in the future. Nobody can deny
that. Within the last 20 years, their share of the global gross domestic product (GDP) has
risen from 18% to 40%. When talking about EM, most people only think about cheaper
labor or means of production, and potential markets, due to their high population level, but
those countries are also home of many increasingly big companies that are starting to look
to developed economies for growth. This essay will look at which are those companies, the
potential challenges they will have to fight on that path to internationalization and the
different approaches to internationalization that are offered to them.
When looking at the Fortune Global 500 list, which ranks international corporations by
revenue, we can see that 89 companies are from China, 3 of which are within the top 10
