Global Business Strategy, 2nd Edition

CHAPTER 3

The Globalization of Opportunity and Risk

Introduction

The rise of emerging markets (EMs) has created major opportunities—for the West as well as developing countries. The term emerging markets refers to economies that experience considerable economic growth and possess some, but not all, characteristics of a developed economy. Therefore, EMs are transitioning from the developing phase to the developed phase.

As global opportunities have increased, so has global risk. Climate change, global warming, environmental pressures, and resource scarcity all have increased substantially—in part due to globalization. In addition, several megatrends in nature, technology, and society—some beyond environmental, social, and cultural factors—increasingly ...