Emerging Markets
BusinessDictionary.com defines an emerging market as, “New market structures arising from digitalization, deregulation, globalization, and open standards, that are shifting the balance of economic power from the sellers to the buyers. In such markets information is freely and widely available, and is almost instantly accessible. To compete in these scenarios, a firm must adopt new processes based information technologies, and must keep a close watch on the price, quality, and convenience trends.”1
While this definition seems quite convoluted, emerging markets can be summarized as “nations with social or business activity in the process of rapid growth and industrialization.”2 This generalization may seem to be somewhat broad, but when the two are combined we can get an understanding of what exactly is going on with emerging markets and how they are differentiated from developed markets. Essentially in looking at these definitions, there are four major characteristics. The first is that they have large populations and thus are regional economic leaders, due to their large markets. This is key as emerging markets are transitioning to consumer based economies, and thus need to have enough people to support consumerism. The second is that they are in transformation socially and politically in order to drive these changes. Emerging market politics is moving away from high government intervention and regulation. The third aspect is that they are they are the fastest growing economies in the world. And lastly, they are playing a more vital role in the world’s political, economic and social affairs.3 With this in mind, it is important to focus on growth, and as such, the role that politics and government play in creating these markets. It seems to be a choice from the emerging country’s government that allows for Foreign Direct Investment (FDI) and thus allows for the growth that is needed to become a consumer society. Growth Factors
Since 2001, annual
While this definition seems quite convoluted, emerging markets can be summarized as “nations with social or business activity in the process of rapid growth and industrialization.”2 This generalization may seem to be somewhat broad, but when the two are combined we can get an understanding of what exactly is going on with emerging markets and how they are differentiated from developed markets. Essentially in looking at these definitions, there are four major characteristics. The first is that they have large populations and thus are regional economic leaders, due to their large markets. This is key as emerging markets are transitioning to consumer based economies, and thus need to have enough people to support consumerism. The second is that they are in transformation socially and politically in order to drive these changes. Emerging market politics is moving away from high government intervention and regulation. The third aspect is that they are they are the fastest growing economies in the world. And lastly, they are playing a more vital role in the world’s political, economic and social affairs.3 With this in mind, it is important to focus on growth, and as such, the role that politics and government play in creating these markets. It seems to be a choice from the emerging country’s government that allows for Foreign Direct Investment (FDI) and thus allows for the growth that is needed to become a consumer society. Growth Factors
Since 2001, annual