The Fragile Five: Effects on International Business

This will affect the foreign exchange value of the land. South African central banks usually adopt a non-interchangeist exchange rate view (Badkar, 2013), but interest rates still rise to 5% (Monaghan, 2014). Turkey and Turkey are completely confronted with other issues concerning government corruption that leads to information hiding and inflation rates are progressing faster than the consciousness of government officials (Monaghan, 2014). Such government corruption places a burden on foreign investors, many of which are withdrawing.

Due to recent Turkish turmoil, it was classified as one of the "fragile five" emerging economies, including South Africa, Brazil, Indonesia and India. The fragile five countries have experienced the greatest pain in emerging markets since the spring of 2013 due to the current account deficit, the high inflation rate, the high reliance on foreign investment inflows, and the slowing economic growth . Prime Minister Erdogan demanded opposition to high interest rates and long-term interest rates to support the sharp decline in the Turkish currency and was forced to succumb to the demands of the Turkish leadership group, which eventually he called "interest lobby" .

In 2013, the Indian retail industry was called "Vulnerable Five" (the term made by Morgan Stanley) and became one of the most popular investment destinations in 2017. It was a fun and successful economic trip. According to the UNCTAD World Investment 2017 report, in the next two years India will be one of the three most attractive investments in the world, behind the US and China in terms of the attractiveness of investment. The electronic retailing industry is becoming increasingly popular in the global retail industry and attracts the imagination of all generations of entrepreneurs through e-commerce companies of various business and business models. The essence of e-commerce is that it can take customers right away across physical boundaries, which makes it different from traditional real stores.