1. Asian Emerging Markets and Development Peter Enderwick Professor of International Business Auckland University of Technology New Zealand Visiting Professor CIBUL, University of Leeds

2. Introduction Focus – Asia, but particular focus on the large emerging markets (LEMs) of China and India.

3. Importance of Asia As well as its numerical importance (population, GDP, trade etc) Asia has been one of the most exciting regions for the past 60 years. Only region to see consistent and broad based economic development i.e. Japan, NIEs, ASEAN, China and India.

4. Structure –Rise of LEMs –Evolution of Research on LEMs –Areas of Research –Management Issues –Asia and IB –Asia in the Longer Term

5. Rise of Asia and LEMs The economic rise of Asia and in particular China and India, has fundamentally affected many aspects of world economic and business activity: –GDP –Trade –Labour markets/job security/income –Foreign reserves –Migration –Resources and commodity prices

9. Importance of LEMs From an IB perspective, LEMs are important in an number of ways: –As markets – more than 2 billion consumers –As lower cost production sites –As learning opportunities Competition Forms and extent New business models -Music -Online gaming - Adaptation of models e.g -Dell -Tata and the Nano

10. Importance of LEMs The breadth of these impacts and the multiple benefits offered by LEMs make them amenable to the multidisciplinary and holistic approaches favoured by IB, i.e. more than international marketing, production or strategic management.

11. Evolution of Research on LEMs Size/scale/growth/broad implications Internal focus – markets/sourcing/business systems/FDI Regional/global impacts Outward FDI/competitiveness of LEMs Upgrading of LEM competitiveness and accommodation of advanced economies Emulation of growth model/management Catch-up versus industry leadership

12. Focus of Research The challenge of LEMs (infrastructure, inequality, inflation, democracy etc); Risks in LEMs (informational, volatility, nationalism etc); Global bads – SARs, Bird flu etc;

13. Focus of Research China and India and their interaction with globalisation (eg global institutions, trade relations, trade patterns with high energy costs); Global protectionism issues; Integration of LEMs into business strategy e.g. capture of raw materials+ manufacturing;

14. Focus of Research Changing nature of strategy within LEMs e.g. Eli Lilly and Chinese hospitals, Renault/Nissan and electric cars; Impacts on aspects of the world economy e.g. resources, financial flows; Impacts of China and India on Asian regional economy;

15. Focus of Research Impacts of China and India on least developed economies; Growth of FTAs; Labour market impacts e.g. skill differentials, labour/capital share

16. Focus of Research China and India – complements competitors, convergence?

17. Management Issues Political economy of the rise of LEMs – –Accommodation re USA –Complementarities vs competitiveness –Backlashes – nationalism, currency, global protectionism, offshore sourcing; Innovation and competitive upgrading; India – Offshore sourcingChina – IFDI and spillovers Role of foreign firms

18. Management Issues Management of global supply chains – quality/cost/ethics; CSAs/FSAs of LEM firms and capture of CSAs; Learning from LEM firms – management of government relations, networks, innovation for the bottom of the pyramid.

19. Asia and the Sustainability of IB China and India, like Japan, provide new stimulus to IB: –New, complex issues –Cross-discipline nature of these issues –Makes infusion more difficult –Encourages problem-oriented approaches –Encourages embeddedness (centres, cross- disciplinary programmes, committed Deans)

20. Asia and the Sustainability of IB –Amenable to external funding –Strengthens non-US perspectives on IB

21. LEMs make infusion more difficult LEMs offer new issues

22. Asia in the Longer Term Key issue of sustaining success beyond catch-up Will China and India turn out to be another Japan? –Size, openness and integration –Competitive relations between China and India drive them –Massive resources –Drivers of regional integration