Business shift during the first decade - 3

Another major shift that has happened during the past decade is the rise in purchasing power of the consumers in the Emerging market. This has resulted in a paradigm shift. At the initial stages of globalization, the MNC's in developed countries beningly looked at emerging economies like the BRIC as a souce of natural resources, cheap labour and inexpensive manufacturing that will reduce the cost of products for the consumers back home. But rising wages, information explosion, greater global travel all led to increased consumption in the Emerging economies. Today, the consumers of emerging economies have become the cynosure of all eyes forcing the self same MNC's to shift their R&D bases to these countries and develop products that are best suited to the needs of the consumers from emerging economies. The learning accrued from that is then transfered back home. The consumers of emerging economies get the first taste of product/process development. The emerging economies no longer have to enter into deals with Firms from developed countries for product import followed by technology transfer. The technology is now developed in country at the destination.