EMERGING MARKETS

Market Expanding Opportunities for Emerging Markets

Market Expanding Opportunities for Emerging Markets

Introduction

It is considered that emerging markets are countries that are in the process of development. At present, are considered emerging markets in Southeast Asia, Latin America and European countries of the former communist bloc. As for the essential characteristics of emerging markets, they have great growth in its economy rapidly but with a risk of unstable political and financial situation.

The performance of emerging markets are described suffer from irregular cycles and monetary policy variables where some variables have merit as key indicators of inflation, balance of payments and the evolution of GDP, being sensitive to the existence of crisis or economic instability that reflect the long term. Another feature of emerging markets is their volatility in the monetary field, which does in many cases they are affected by their lack of liquidity in their assets, causing slowdowns and sudden changes in performance. (Blomstermo, et al. 2006, 211-229)

One of the key indicators of emerging markets investment is followed by consumption, reflecting the behavior of investors and consumers in the domestic economy in aggregate demand.

As for the essential characteristics of emerging markets, noted that they have a large growth in its economy rapidly but with a risk of unstable political and financial situation, as the case we are concerned that of Venezuela. The performance of emerging markets are described suffer from irregular cycles and monetary policy variables where some variables have merit as key indicators of inflation, balance of payments and the evolution of GDP, being sensitive to the existence of crisis or economic instability that reflect the long term. (Driscoll, 1997, 77-83)

Another feature of emerging markets is their volatility in the monetary field, which does in many cases they are affected by their lack of liquidity in their assets, causing slowdowns and sudden changes in performance.

Noted however, that the 12 big emerging markets represent 73% of gross domestic product of the third world can be a good place to start, as other Western companies are installed there and these countries have already developed some infrastructure. These markets are: Argentina, Brazil, China, India, Indonesia, Mexico, Poland, Russia, South Africa, South Korea, Thailand and Turkey.

The emphasis on emerging markets considered high risks and high rewards. Researchers establish that there are four essential elements to succeed in the emerging markets:

Good partner, you probably need someone with sufficient skill to maneuver around often suffocating business laws and a bureaucracy that will attempt to meddle in your business whenever possible.

An open mind, because things that are taken for granted in the country of origin may not exist in the country of the emerging economy. Things that are taken for granted in the country of origin can be exactly the opposite in the country of the emerging economy.

Active participation, have own staff in place, directing, training and implemented business methods, business ethics, efficiency and quality control, among other things.

And extreme patience, this principle comes from the maxim that everything ...