About | HeinOnline Law Journal Library | HeinOnline Law Journal Library | HeinOnline
LOG IN
LOG IN

65 Mercer L. Rev. 733 (2013-2014)
Emerging Market Challenges: Moving beyond Trade to Promote the Middle Class and Avoid the Middle-Income Trap

handle is hein.journals/mercer65 and id is 759 raw text is: Emerging Market Challenges: Moving Beyond Trade to Promote the Middle Class and Avoid the Middle-Income Trap by Penelope B. Prime* I. INTRODUCTION The rise of the middle class around the world is seen by many as the next frontier in business opportunities. In fact, the concept of emerging markets is closely associated with the likelihood of a rapid rise in middle-class incomes; in other words, a large internal market potential or an increasing purchasing power among consumers.' One report by McKinsey & Company2 estimated that annual private spending in emerging markets will reach $30 trillion by 2025.' It has been estimated that global consumers and proportional spending will increase from 1.8 billion people spending $21 trillion in 2009 to 4.9 billion people spending $56 trillion by 2030.' Another trend, however, raises the prospect that these opportunities will be tempered, at least in certain markets. The so-called middle- income trap, also referred to as growth slowdowns, is increasingly cited * Director of the China Research Center & Professor of International Business, Institute of International Business, J. Mack Robinson College of Business, Georgia State University. University of Denver (B.A, 1976); University of Michigan (MA, 1980); University of Michigan (Ph.D., 1987). The Author would like to thank Drew Matthews for his research assistance. 1. S. TAMER CAVUSGIL ET AL., DOING BUSINESS IN EMERGING MARKETS (2d ed. 2013). 2. Yuval Atsmon et al., Winning the $30 Trillion Decathlon: How to Succeed in Emerging Markets, McKINsEY Q., Aug. 2012, at 1. 3. Id. 4. Homi Kharas, The Emerging Middle Class in Developing Countries, BROOKINGS INSTITUTION,http*//www.brooking.edu/research/paper/2010/01/global-consumers-khraras. 733

What Is HeinOnline?

HeinOnline is a subscription-based resource containing thousands of academic and legal journals from inception; complete coverage of government documents such as U.S. Statutes at Large, U.S. Code, Federal Register, Code of Federal Regulations, U.S. Reports, and much more. Documents are image-based, fully searchable PDFs with the authority of print combined with the accessibility of a user-friendly and powerful database. For more information, request a quote or trial for your organization below.



Short-term subscription options include 24 hours, 48 hours, or 1 week to HeinOnline.

Purchase Access

Contact us for annual subscription options:

Contact Us

Already a HeinOnline Subscriber?

Log In

profiles profiles most