Question

Rapidly developing economies (RDEs) are having a significant impact on the global economy, both as attractive new markets but also as new competitors for firms in highly developed economies. Explain the three forms of competitive advantage that firms can achieve by moving operations to and marketing in RDEs. What products or services make the most sense to relocate to RDEs?

Answer 1

Rapidly developing economies is a term which is used to describe a country whose economic resources are increasing rapidly and is emerging in the international market as well.

Three competitive advantages that firms will get after moving their operations and marketing in Rapidly developing economies:

• Rapidly developing economies will have great opportunities for firms. This will help them in increasing their revenues through maximization of sales.

• Rapidly developing economies will have a longer product span for the goods and services available in the market. This will ensure continuity to the firms.

• Rapidly developing economies will have a great customer base; this will help the firm to attract more and more customers on a daily basis and increase its customer base for higher profits.

Goods and services demanded by the consumers in rapidly developing economies will make sense if a firm needs to relocate them. There is not a particular set of goods and services that can be relocated to Rapidly developing economies. A firm has to do proper research about the preferences of the consumers and then relocate goods and services accordingly.

However, the automobile industry and information technology are examples of goods and services that will make the most sense to relocate in Rapidly developing economies.

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