Emerging Markets

By Region:

Latin America

Southeast Asia

Middle East

Eastern Europe

 

By Industry:

Pharmaceutical

Finance/Banking

Agriculture

 

Hurdles to Overcome in Identifying Emerging Market Opportunities

• Political and Social Systems: Research the foreign market's political system as it affects product, labor, and capital markets. Relationships between ethnic, regional, and linguistic groups in emerging markets also affect foreign investors.
• Openness: The more open a country's economy, the more likely it is that global intermediaries will be allowed to operate there and the more likely that it will welcome direct investment by non-native companies.
• Product Markets: Developing countries have opened up their markets and grown rapidly during the past decade, but it may still be difficult to obtain reliable information about various types of native consumers.
• Labor Markets: There are relatively few search firms and recruiting agencies in low-income countries, and it may be difficult to recruit managers and skilled workers in foreign markets.
• Capital Markets: Capital and financial markets in developing countries usually lack sophistication, and there may not be many reliable intermediaries like credit-rating agencies, investment analysts, merchant bankers, or venture capital firms.