Market Economics:

Market economy refers to an economic system in which economic decisions and the pricing of goods and services are guided solely by the aggregate interactions of a country's citizens and businesses and there is little government intervention or central planning. Market economies work on the assumption that market forces, such as supply and demand, are the best determinants of what is right for a nation's well being. These economies rarely engage in government interventions such as price fixing, license quotas and industry subsidizations.

Emerging Market Economies (EMEs) have experienced rapid growth in economic activity and international trade over the last fifteen years, having normally outperformed the rest of the world in these two areas. Among emerging Asian countries, this has been largely the result of an outward oriented strategy sustained on a very strong expansion of trade within and outside the region. The fast pace of economic growth exhibited by the region since the 1980s came suddenly to a halt at the time of the Asian financial crisis of 1997-1998. At that time, the strong intra-regional trade linkages transmitted negative shocks experienced in one country throughout the area. However, the economic slowdown in Emerging Asia proved temporary, and the expansion eventually resumed strongly. Latin American economies emerged from the lost decade of the 1980s, benefiting from the implementation of sound macroeconomic policies and structural reforms. As far as international trade is concerned emerging market economies. The analysis shows that business cycles and international trade tend to adopt different features in different countries, at different horizons, and in response to different shocks.

emerging markets countries appear to be relatively little affected by foreign shocks, with the latter capturing developments in advanced economies as well as global commodity prices. These external disturbances on average explain no more than 10% of the variation in real output, consumer prices, real exchange rates, real exports and real imports among emerging market economies.