Emerging Market Characteristics

Table of contents

Introduction……………………………………………………………………

Emerging market characteristic……………………………………………….

Entrepreneurship in China…………………………………………………….

Formal institution……………………………………………………………..

Informal institution…………………………………………………………..

Conclusion……………………………………………………………………

References…………………………………………………………………….

Introduction
As the rapid growth rate of economic in current world market environment, economic globalization is affecting emerging countries economic development by increasing oversea business activities such as FDI, export-import, also the culture communication between different countries are interacting and influence each other during foreign business activities. The globalization also simulates innovation

After the Open door policy, China start attracting foreign investment and global company into the country and cheaper labour force become national advantage for developed countries that willing to put manufacture outsourcing process in China. The demand of markets boosting in the stage of economic development, and there are large amount of potential opportunities occur in the market place. With increasing of FDI, China also learn knowledge and skill in innovative technologies and helping local business development. In the result, the GDP is rapidly growing since 1995 (World Bank Data 2017), which also means consumer purchase power is also sharply increase in internal market. Also in 2001, China was formed into BRIC with other three countries as one of powerful emerging market country in the

“According to the economic policy changed and market reform by Deng Xiaoping in 1992, the Chinese communist party leaders have now publicly acknowledged the positive contribution that entrepreneurship can bring to the country’s development.” (Puffer, S. M., McCarthy, D. J., & Boisot, M. (2010). Chinese government policy supports the mass entrepreneurships by optimizing fiscal and taxation policies to reduce difficulty and uncertainty in infant industry business. It makes easier for entrepreneurs to raise fund and gain enough financial support in the start-ups. Moreover, “government reduce taxation burden for small-medium size enterprise such as cut down the income tax to 18% for those enterprise with annual profits around $12,000, therefore with the increasing size of small and medium firms, it brings more job opportunities, simulates economic growth and promotes technology innovation in the market.” (Chen, J 2006). The policy also encourages innovative business development in new market area by enhancing the intellectual property protection and extended accessibility towards financing and outsourcing for entrepreneurs, “the enhance of protection of property rights are crucial for the entrepreneurs who need to rely on the security of their