The difference between emerging and developed markets: BRICs and Lockheed Martin

Question 1 

Emerging markets are different from developed markets due to various reasons. The differences in the two types of markets are encompassed by factors such as low income, bad governance, and availability of raw material, cheap labor, and advancing infrastructure. Developed markets are characterized by high per capita income. Majority of the population are working class earning wages. In such economies, minimum wages are set. As such, the benefits of cheap labor are minimized due to the legal restrictions that are enacted. Conversely, most of the emerging markets have raw materials that can be utilized by firms to produce finished products of higher economic values. Bad governance that encumbers progressive economic growth also characterizes some of the emerging markets. Lastly, the level of infrastructural development distinguishes between emerging market and developed markets. Therefore, in evaluating the emerging markets and developed markets, it is imperative to consider the detailed status of each factor. 

Question 2 

The institutional challenges that may face the BRICs are likely to impede the projected economic development of the nations. The challenges include access to finance, informal economy and corruption, gender and religion, education and human capital, and political economy. All the institutional challenges have a varying degree of effects in the performance of the business in the highlighted economies. For instance, limited access to finance implies that the production capacity of business organizations is reduced. Informal economy and corruption are continually affecting business organizations. Some nations have restrictions based on religion and gender. The restrictions reduce the efficacy of business operations leading to slow growth. Education and human capital are necessary for economic success. As such, sufficient or insufficient education and human capital determine the degree of economic prowess in the country. Lastly, political economy determines the level of economic development in the nation. The political economy that marginalizes rural areas is toxic for the national economic growth. 

Suppose Amazon wants to enter into the BRICs market, the strategy that they can adapt to deal with the various challenges identified is to promote corporate social responsibility (CSR). Through CSR, Amazon will increase its credibility in the economy by taking concerted efforts to minimize or reduce the intensity of institutional challenges. 

Question 3 

Lockheed Martin is an organization whose products and services governments mainly receive as it deals in aerospace, security, and defense. However, the factors identified have an indirect effect on the Chinese consumer. Changing role of gender in the society shows that more females are taking jobs that were once assigned exclusively for men. As such, Lockheed Martin operating in China will enhance the gender roles by employing more women. However, it is vital to recognize that the remaining factors have insignificant effects on the operation of Lockheed Martin in the Chinese economy. 

Question 4 

The models presented by the organizations that are operating in the emerging markets can be scaled up through expansion to ensure it is available to the giant population. Most of the organizations that have developed the models understand the gravity of prevailing social and environmental challenges that societies are encountering. The models have been used as pilot projects, and the results are impressive. The general population is responding positively to the models implying that the organizations establish the model of trust. As such, the companies can expand the models to cover large population with the aim of ensuring that the projects achieve the primary objectives. 

Sustainability and viability of the bottom-of-the-pyramid models depend on the strategic decisions that the parent organizations make. From the superficial analysis of the model, it seems that they are a viable business venture. The market environment changes continuously. Such implies that for the models to remain viable and sustainable, the management must have a comprehensive understanding of the emerging trends in the market and formulate appropriate mitigation strategies to facilitate effective operations of the models. The models that these organizations embody are viewed as the solution to the imminent challenges that are facing the business environment. Commitment to the aims of the models will make them viable and sustainable business venture. 

Question 5 

The law restricting operations of international schools in China is ill-advised and misleading. The underpinning reason for such control is to promote patriotic energy among the Chinese students. However, it is important to note that the contemporary world is different from the status of the world in the last centuries. The society is growing steadily due to globalization. For any nation to reach its potentials, the young generation must be provided with an opportunity to learn in different environments. Foreign academic institutions provide the students with new knowledge and skills that they transfer to their countries of origin to help it progress. 

The benefits of international education extend to the promotion of peaceful coexistence and harmony in the world. The students are exposed to diverse cultures and customs, which enable them to understand the dynamic nature of the world. The world is fast changing, and virtually all societies have adopted some new customs. The national pride will still be maintained despite the students taking international curriculum. In any case, the international curriculum premises the objectives of education, which includes training students to be holistic and important members of the society. The wind of change is unavoidable. As such, students should be allowed to take education system of choice without stringent measures that seemingly relies on the baseless and unfounded fears.