The Challenges Of Emerging Markets

This report is intended to brief the reader on the effects of emerging economies on North America’s economy and the global market on a whole. This report provides an overview of the emerging economies of India & China; their education, ideological beliefs & economic performance and how North America’s way of business is affected. This report was compiled based on articles from reputable sources, such as Bloomberg and articles published within the industry. This report was authorized by Mr. Laviolette, an Accounting teacher at Jean Vanier Catholic High School.

Some of us are aware, especially those who are tech geek like I am, that, Tech companies are notorious for copying each other’s products and services, essentially “stealing” ideas. While some consumers get frustrated with companies releasing copycat products, the reality is that this game of one-upmanship results in better services for the consumer. Just to cite a few examples, according to P. Baumgartner (2008). “Don’t knock copy-cat innovation, it fuels the real stuff” at ventureburn.com, “Google wanted a more networking-friendly Facebook, so it created Google+. Apple’s team wanted its own navigation app, so it onced tried Google Maps. Facebook didn’t want to miss out on

For many firms, seeking for new countries’ markets is the mainly attempt to spread their products or services into the foreign markets, and the firms will retain and construct their participation in present markets to increase their worldwide competitive force (Doole and Lowe, 2012, 218; Hollensen, 2007, 5).About market , there is no perfect market entry plan and different market entry methods might be adopted by different firms entering the same market and/or by the same firm in different markets (Bukley, 1985).

An emerging market economy offers large market for the consumer goods with a high growth potential. Moreover there are defined as high growth potential economies where the institutional framework is not clearly developed yet. One of the greatest ways of entering emerging markets are mergers and acquisitions. The purpose of this way is to enhance capacity fast, provides a direct access to networks and distribution channels etc. Researchers are necessary to choose the appropriate method to enter the market.

In sum, the key to effective entry into emerging markets appears to lie in overcoming both the soft entry barriers through advancing managerial understanding of the institutional contexts of these markets, and surmounting the hard entry barriers, both structural, such as cost, capital, and product differentiation advantages established by the incumbents, and strategic, such as those that are purposefully erected by the incumbents. (Yaprak, 2012).

Boonthanapibul, C (2010). Doing Business in China: Cultural Factors, Start-up Concerns, and Professional Development. Retrieved from http://www.bu.ac.th/knowledgecenter /executive_journal/july_sep_10/pdf/aw26.pdf

Using an example of an MNC from an emerging market, present an analysis of the firm-level and country-level factors that have contributed to its success and/or failure. What are the main lessons international business managers can learn about the interplay between firm and country-level factors in achieving success?

FDI flows to EMSs recently have decreased considerably compared to those in 1990s with regard of potential risks in EMSs. However, as time passes by, emerging market has become an important part of the international economy.

Under a global environment, sometime it becomes necessary for an organisation to have an international view. For those companies who want to enlarge their size or expand their market, they may consider investing abroad as a possible choice. Usually, the decision is made under a proper estimation. But since there are many risks in a foreign environment, it may be hard for the company to make an evaluation. Basically Investors decide where to invest based on their perceived economic risks, political risks, and legal risk (Sandler and Enders 2004). So this essay will evaluate how these risks affect organisations decision when they want to invest abroad, try to find out whether there are good ways that company can use to reduce the effects of these risks and make a suitable decision.

Nowadays every company must consider the legal aspects of its home country and of the country where it wants to expand and that is the reason why when you want to build, to develop a business you have to interact with all of this details to be on the “legal way”.

As globalization intensifies, the business community tends to expand its operations towards the international market. This can be as a result of intense competition in the local market, need to increase sales and profits margins, to enhance the company’s prestige, to create jobs, to increase the value of the entrepreneurs among others (Bodie, 2013). Before going global, the company’s executive has to consider factors that favour or hinder their goal towards achieving international recognition in trade. This paper reviews the topic on “Making an Investment in a Foreign Market and factors considered.

The study of the internationalisation process of emerging market multinationals (EMNCs) has gained prominence in the last two decades. This is as a result of the economic growth and transformation witnessed among the emerging markets (EM) and the growth of EMNCs. The internationalisation phenomenon has resulted in a surge of interest from international business (IB) scholars (Athreye & Kapur, 2009; Hoskisson, Eden, Lau, & Wright, 2000; Hoskisson, Wright, Filatotchev, & Peng, 2013; Jormanainen & Koveshnikov, 2012). A critical observation of extant literature shows, however, that Asia and Latin America has dominated the study of EMNCs internationalisation for many years (Child & Rodrigues, 2005; Cyrino, Barcellos, & Tanure, 2010; Eren-Erdogmus, Cobanoglu, Yalcın, & Ghauri, 2010; Fortanier & Tulder, 2009; Olaya, Olaya, & Cuéter, 2012; Sim, 2005) and Bianchi, (2014). Sub-Saharan Africa (SSA) firms have also emerged as high profile multinationals increasingly engaged in foreign expansion especially across the region. Such firms for examples include MTN, First Bank of Nigeria, Eco bank of Senegal, Dangote, ShopRite, Equity Group holdings, Globalcom, SABMiller of South Africa, InterSwitch and Computer Warehouse Group to mention a few. These multinationals are emerging across different sectors, taking advantage of their home country business environment to internationalise (Initiative for Global Development and Dalberg Global Development, 2011; William, 2013). However, emerging SSA

Companies can decide to go global or to enter international markets for various reasons, and these different objectives at the time of entry that enable the business to produce different strategies and the performance goals, and even forms of market participation.

Emerging markets is a relative concept of countries in Western Europe, North America, as well as Japan, Australia, New Zealand and other such "mature market." Emerging market countries are those who have the potential to become a mature market countries, and part of the conditions, with the commercial market mechanisms that is industrial based and to a certain extent of specification. According to the authoritative definition of the international finance corporation, whenever the Gross National Product (GNP) of the country has not reached the level of high- income countries delineated by the World Bank, the stock market in this country is an emerging market. The four largest emerging

With more and more foreign companies planning to invest in emerging markets there is a clear need to not only further extend but also develop a conceptual framework to guide and structure the rapidly growing