Question

Please provide a detailed answer with justifications to the following question:

Is the economic progress of developing countries a market opportunity for developed countries?

Answer 1

The economic progress in the developing countries is definitely a market opportunity for developed countries. The markets in the developed countries are saturating and there is less scope to expand the market there. Therefore, in order to expand market share, firms from the developed countries are increasingly penetrating the developing markets. For example, Apple has hardly any more scope to increase its sales in the USA because the USA market has almost saturated. Therefore, Apple is increasingly focusing on developing markets like India to increase sales. This has been possible because of the increasing income in the developing countries. The economic growth of the developing countries has provided market opportunities to the developed countries.