International Business: The New Realities, 5th Edition

Advanced Economies, Developing Economies, and Emerging Markets

1. 8.1 Understand advanced economies, developing economies, and emerging markets.

The map in Exhibit 8.1 highlights the country groups examined in this chapter: advanced economies, developing economies, and emerging markets. Exhibit 8.2 provides an overview of key differences among the three country groups. The group with the largest number of countries by far is the developing economies. However, they contribute least to world GDP, and their citizens have very low incomes. Their disposable income, the proportion of personal income they spend on purchases other than food, clothing, and housing, is very limited. Approximately 10 percent of all developing economy residents live on less ...