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Due to development of international trade, areas with emerging economy without much raw materials, undeveloped medication system, factories might be dependent on goods from other countries. This leads to the country not being able to export goods, but mostly only import which could reduce economic growth of the country.

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Due to the increase of trade in the emerging economies, it could make them become extremely dependent on their investors to the point where they start to neglect their own businesses within their local community, and this can be negative because if an investor (e.g. medication) stops investing, they may not have their own medical services to provide for their people.

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Emerging economies may result in income inequality due to the fact that the benefits aren't being disturbed evenly resulting in a large gap between the rich and the poor. One example of this is Brazil as many low-income still cannot afford education/ healthcare despite economic growth int he country

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When there is political instability in emerging economies, it causes many problems. The economy becomes uncertain, and people are afraid to invest money. This makes it hard for the economy to grow. Infrastructure like roads and public services like schools and hospitals can also get worse because the government can't focus on them. There can be fights and conflicts, and the government might not work well or be fair. This can make life harder for people and damage the country's reputation. It's important to fix political instability so that the country can develop and be successful.

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Political instability is defined as the probability that government policymakers are removed from office. This may cause a decrease in the market confidence of the country’s future and reduce the amount of long term investments which will decrease GDP for the country. Decreasing in GDP of a certain country may cause other problems such as unemployment, decrease in public sector goods as government income reduces due to decrease profit from firms that lead to decreased tax revenue. This may end up in economic recession and more severely depression may occur due to the constant decrease in GDP for example Israel in 2023. Economic instability due to war lead to recession in the country.

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Rapid urbanization would be one of the negative affects as it leads to overcowding, inadequate housing, increased poverty in urban slums, and strains on urban infrastrucutre and services. Moreover, it would lead to cultural disruption as the rapid development would disrupt traditional cultural practices and social norms, which would create tensions between generations.

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limited basic services in brazil - sabrina

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limited basic services in brazil - sabrina

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Income inequality refers to how unevenly income is distributed throughout a population.

A case study of income inequality is Brazil where despite their significant progress in reducing poverty and inequality, Brazil still faces challenges related to income inequality. The concentration of wealth in the hands of a few has resulted in limited access to quality education, healthcare, and basic services for a significant portion of the population. Income inequality has also contributed to social divisions and hindered social mobility.

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The influx of western ideas due to the global connectedness of emerging economies developed when they are trading with foreign countries can lead them to learn different cultures, but can sometimes disrupt the regime control, such as upheaval in Urumqi.

Meanwhile, the FDI from foreign countries might manipulate with the supply chain in a country with purpose. How the government proposes new policies may as well lead to grudge regarding to trade.

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due to income inequality, the gap between the rich and the poor increases overtime as the rich make more and more money but the poor struggle to find stable income. income inequality prevents the poor from making more money as they tend to lack in abilities leading to a lower paying job significantly less than the rich.

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Growing economies can cause environmental damage due to demand for natural resources. An example of this can be seen in Indonesia where a rapid growing economy has led to increased pollution and environmental degradation including deforestation, erosion and water pollution.

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Rapid urbanization and industrialization can result in the displacement of communities, particularly those living in rural areas or informal settlements. Development projects, such as infrastructure construction or land acquisitions for industries, can force people to leave their homes and communities. This displacement can lead to the loss of social support networks, cultural heritage, and traditional ways of life, thereby creating social disruption and dislocation.

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Increased risk of poverty: Financial vulnerabilities can push individuals and families into poverty. Insufficient income, job loss, or unexpected expenses can disrupt financial stability and make it difficult to escape the cycle of poverty.

example : mexican financial crisis where cuts of education and healthcare spending

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emerging economies result in migration and immigration to and from countries, this results in some countries and organisations losing valuable individuals due to better opportunities, better pay, etc. in other countries.

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Louis - growth of businesses causing social dislocation

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Louis - growth of businesses causing social dislocation

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As countries increase in economic output, certain businesses will dominate and those businesses may take advantage of their status and dislocate many underprivileged for their monetary gains. For example, in India, the company Vendanta wanted to mine Bauxite. However, this interfered with the lives of many tribal people living there and therefore ensued a long legal battle on whether or not to implement the mine.

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emerging economies might have less protection of workers due to how rapid industrialization grows, therefore may become a push factor and cause brain drain

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financial vulnerabilities caused by emerging economies-John

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financial vulnerabilities caused by emerging economies-John

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Some emerging economies may have new or weak financial institutions such as banks with poor regulations, supervision, and risk management. This can make them more at risk of financial crises or failures.

Example:

During the early 2000s Argentina faced a severe financial crisis, resulting in recession, high levels of inflation and large amounts of debt.

Reasons for this financial crisis in Argentina was poor risk management by banks and a lack of transparency from banks, disincentivizing investors.

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emerging economies could face wealth disparities compared to developed countries, which could result in limited job opportunties --> skilled individuals might choose to work somewhere else instead, creating a brain drain

developed countries often offer more developed technology and better quality services (eg. education/healthcare), making this attractive to individuals from emerging economies since they could gain a better quality of life

an example of this could be India, where they have many skilled workers. Since it has an uneven distribution of wealth, skilled professionals seek better-paying jobs and improved living standards abroad, particularly in developed countries like the US, UK and Canada.

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Environmental degradation due to farming: Cayden

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Environmental degradation due to farming: Cayden

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As a country gets richer, the farming industry increases. This hurts the environment due to deforestation being required to create more farms, and cattle releasing methane, which increases the rate of global warming. For example, the growth of the farming industry in Brazil has caused lots of deforestation in the Amazon Rainforest, as well as releasing lots of greenhouse gases.

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Limited Access to Essential Resources-Adrian

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Limited Access to Essential Resources-Adrian

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Financial vulnerability often leads to limited access to essential resources like food, housing, healthcare, and education. People who are financially vulnerable may struggle to afford nutritious food, live in poor housing conditions, lack access to quality healthcare, and face barriers in pursuing education. These limitations contribute to a cycle of poverty.

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emerging economies result in a increased amount of waste generation.

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Developing areas may become dependent on foreign investments, and the local industries may decline. Once the multinational corporations find other areas with cheaper production costs, they may move out of the developing area and the people may face sudden unemployment

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countries experience extensive deforestation to make way for agricultural expansion, mining activities, and infrastructure development.

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Rapid industrialization and urbanization in emerging economies often lead to a significant increase in greenhouse gas emissions.