Newly host of services to such countries and MNCs,

Newly developed countries
are a great way to expand business operations and gain further recognition
worldwide rather than nationally. A great way to start would be to invest in nations known as the BRICs,
which consists of Brazil, Russia, India and
China. BRICs, Brazil, Russia, India and China (BRIC), refer to the idea that
China and India will, by 2050, become the world’s dominant suppliers of
manufactured goods and
services, respectively, while Brazil and Russia will become similarly dominant
as suppliers of raw materials (Investopedia.com, 2018).
In 1990 BRIC nations accounted for 11 percent of global GDP; in 2014 this
figure had risen to nearly 30 percent, including a high in 2010, following a
plunge in value, surrounding the 2008 financial crisis (Investopedia.com,
2018).

2.2.1 BRIC Investments Potential

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TH will benefit from investing in BRIC
nations, as these countries are expected due to their history. As investing
stores or even developing operations into these foreign markets will prove to
be advantageous for TH, due to the all these countries having underlying
unemployment issues, for example, India has more than 50% of the population who
are under the age of 25 years of age (Puram, 2017), and this
therefore proves that there is a young aged demographic available, which could
provide future TH outlets in India, with a young labour force, that will bring
innovative young workers, that are motived and physically fit to work. Which
may reduce other areas of costs i.e. sick pay, and as more than 50% of the
population would be able to work, there will always be and availability of
labour.

2.2.2 Emerging Markets – An Investment into India

India is one of the world’s fastest growing economies, the
rapid expansion in GDP has grown on average of 6-7% every year since 1991 (Ibef.org, 2018). The
challenge faced by other nations presents an opportunity for India. With its
large population of educated youth, India can provide a host of services to
such countries and MNCs, as the problems faced in shortages and operational
problems, a newly developing country like India can be of service.

To realize India’s
potential, MNCs must show a strong and visible commitment to the country,
empower their local operations, and invest in local talent. They must pay
closer attention to the needs of Indian consumers by offering the customisation
the local market requires. Thereby MNC executives must think hard about the
best way to enter the market (National Family Health Survey, 2018). Further,
as moving into Indian markets will essentially be hard to implement at first
due to the vast cultural differences, especially for TH, as the market proves
to be diverse yet traditional in the sense of cuisine. An example of trade restrictions due to
culture include the difficulties KFC have had In India, seen as a culturally
difficult marketplace. Indians at the time being unclear towards foreign
culture and therefore causing protests. Thus proving that moving into Indian
markets will be hard to implement at first as the profound cultural differences
can cause companies to go against fundamental core objectives and standards to satisfy
the foreign market due to the outstanding differences in cultural needs like
the preferred type of food (Ibef.org,
2018).

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