For an emerging market country to create a business environment comparable to that of a developed country it must reduce its barriers for trade and investment to integrate better into the world economy. Market liberalization, increased political stability, and economic and legal reforms can lead to a more productive business environment for an emerging market country. The level of technology, with well-built communications and computing are a must in today's world for a prolific business environment. Developing a strong relationship between both developed countries and also emerging market countries is a must if you want a successful business. When business structures are based on long term relations, then that can create an entry barrier for multinationals. Another big difference between developed countries and an emerging market country is how much involvement the government has in the market operations. The structure of the distribution channels needs to be strong for an emerging market country to become like a developed country. A developed country is one that has a high level of industrial development, bases its economy on technology and manufacturing instead of agriculture. The factors of production such as human and natural resources are fully utilized resulting in an increase in production and consumption which leads to a high level of per capita income. (Cavusgil).
The political system consists of political parties, interest groups, trade unions, and legislative authorities. Effect of the different types of political systems on the economy leads to command economies or market economies. Political systems can lean towards collectivism or individualism. One characteristic of the political system is the position between democracy and totalitarianism. It is possible to have democratic societies that emphasize a mix of collectivism and individualism and it is also possible to have totalitarian societies that are not collectivist.
