Growth Surprises and Synchronized Slowdown

Question: Discuss about the Growth Surprises and Synchronized Slowdown. Answer: Introduction: Global management in emerging markets remains more challenging as compared to settled markets. These challenges include first, the need for managers of businesses in emerging markets to maintain and sustain strong financial and/or fiscal and external business buffers, along with implementing good policies in the emerging markets (Fayad Perrelli, 2014). This can be referred to as macroeconomic stability which is currently paramount for organizations managing emerging international markets. These institutions should now improve continually with the aim of creating and implementing policies that are better than those in settled markets. Secondly, global management in emerging markets is challenging due to the surge in local and international demand for goods and services (Tsangarides, 2012). An increase in demand automatically calls for an increase in demand. Thus, globally expanding organizations are continually focused on ensuring that the goods and services needed in particular sections of the economy are produced and distributed within time. Demand and supply shifts in emerging markets according to Ferreira et al (2013), influence the management to be on the lookout for any daily changes in prices, supplies, production, in order to optimally acquire due profits. Thirdly, emerging markets are quite competitive as governments tend to lift any monopolistic behaviors in the economies. Managers of globally expanding companies thus opt to find the strategies that are suitable to outdo their competitors (Tsangarides, 2012). This is not the case in settled markets where most companies are aware of their almost fixed market segment. According to the Inter-American Development Bank (2013), individual companies must thus ensure that they are continually instituting and implementing programs that will make their products more sellable than those of their competitors. Another challenge in managing emerging markets includes the increase need for innovation, research and development. In order to outdo particular supplies in the global emerging markets, there is a need for companies to invest heavily in innovation and implementation of research programs (Ferreira et al, 2013). Managers are compelled to invest in research so that they develop unique products that can sell well than those of their competitors. When compared to settled markets, there is a clear difference as such markets tend to innovate slowly and sometimes take longer to develop any new products. Further, managing globally emerging markets is more difficult as compared to settled markets due to the need to make heavy investments with an intention of preventing bottle necks. Organizations in emerging markets focus on improving their infrastructure including transportation, energy among others (Fayad Perrelli, 2014).). These enable the companies to expand and reach their emerging markets with their unique products. Heavy investments are also channeled to training of current workers and recruits in order to boost efficiency in production and provision of services in such economies. References Fayad, G., and R. Perrelli, 2014, Growth Surprises and Synchronized Slowdown in Emerging MarketsAn Empirical Investigation IMF Working Paper. Tsangarides, C. G., 2012, Crisis and Recovery: Role of the Exchange Rate Regime in Emerging Market Economies, Journal of Macroeconomics, Vol. 34, pp. 47088. Ferreira, P., S. De Abreu Pessoa, and F. A. Veloso, 2013, On the Evolution of Total Factor Productivity in Latin America, Economic Inquiry, Vol. 51, No. 1, pp. 1630. Inter-American Development Bank (IDB), 2013 Rethinking Reforms: How Latin America and the Caribbean Can Escape Suppressed World Growth (Washington: IDB).