Brazil As An Emerging Market Economy Business Essay

Brazil As An Emerging Market Economy Business Essay Globalisation has become the order of the day and as multinational companies are scouting for new avenues in the bid to achieve competitive advantage over rivals and have at the same time economic viability of operations, nations too are vying with each other for a significant share of the global economic pie to cater to the development of themselves and take care of the socio-economic conditions prevalent amongst the population. Whilst the dominance of the developed nations persisted for a significant period of time, with political conditions such as the cold-war, division of Germany, and the like, abetting it, the changed political atmosphere worldwide threw up many opportunities and challenges requiring an introspection of policies of the nations and a need for reinventing and refurbishing of existing laws and governing policies to make the nation more dynamic and competitive. This assignment is sequentially structured to analyse the nature of emerging markets, the role of multin ational organisations in emerging markets, Brazil as an emerging economy, the need for cultural familiarisation for working in such an environment. This study also takes into consideration the cultural analysis of Brazil done by the renowned Geert Hofstede in an attempt to familiarise managers with aspects they should expect, and practice whilst in Brazil. These are followed by a PESTLE analysis of Brazil and finally end with a summative conclusion. Critical Analysis and Discussion Whilst no one-liner definition exists of emerging market economies (EME), the characteristic features tend to determine what they really are. Rapid economic growth, increased and sustained foreign investment, coupled with significant international political influence are the main markers of this type of economy. These economies are not on par with those of advanced nations due to the difference in the level of development .Very often bad policies namely those that interfere with the efficient performance of economic factors, and fragile institutional structures that place an additional burden of transactional costs for domestic and foreign investors, tend to inhibit potential investors. The expansion of organisations spanning different countries is centuries old, the expansion of multinational companies and their relevant importance in world trade achieved rapid pace post 1980 era. The propensity of integration with the global economy, together with the decline in the importance of the economic role of the nation led to the tremendous expansion of MNCs, particularly in the developing nations of the world. The significance of the functions of transnational companies in the shaping of the global economy has manifested, in significant proportions in the 20th century, such that â€Å"any of the top 100 or so global firms exceed the GDP of many nations†Ã‚  [18] and as it stands today, multinational companies are responsible for most of the employment and output and t in the world . [19] They have a reciprocal relationship with the globalization process; whilst globalization has contributed to high FDI flows to nations, countries eager to acquire a share of these FDI flows have undertaken significant policy shifts towards liberalisation. [20]Additionally, multinational companies have made it possible for the creation of â€Å"the global village† by facilitating international amalgamation of markets.[21]