4-1 Discussion: Global Economic Environment The U.S and other developed countries middle class consumers played key roles in the global economy in the past few decades, but with the slow growth in US and other developed countries the growth expected come from the emerging economies such as BRICS. Global middle class will expand dramatically and multinational business needs to think about the middle classes. According to Court and Narasimhan (2012), local economies in the BRICS countries already captured a portion of the market and consumers are familiar with the brand, so it is important for the multinational companies to become successful, leverage existing mass manufacturing facilities, tailor the product filling the gaps for local market keeping low costs, and appealing to patriotism respecting local culture. Emerging markets make up close to more than half of the profits from selling luxury goods. Middle class can now buy cars, engage in international tourism, demand world-class products, and require international standards for higher education. When it comes to make use of the BRICS countries growth, opportunities in developing …show more content…
The attitude translates into high spending and Court and Narasimhan (2012) estimates the global middle class spent $6.9 trillion and expect to rise to $20 trillion during the current decade. When disposable income increases at a point consumers will buy lot more than basic goods. According to Kharas and Santiso (2012), income distribution in the middle class remains unaltered and with the income gap widening the size of the middle class would probably expand more rapidly in the emerging