What Are the Main Characteristics of Emerging Markets?

Topics: Emerging markets, Developing country, Developed country Pages: 3 (1163 words) Published: August 21, 2012
In contemporary society, emerging Markets (EM) are increasingly becoming the most important strength that could promote the development of the world economy. Broadly speaking, the term "emerging market" has been used mainly to refer to the developing world in Asia, Africa, and Latin America. (Mody,2004). Narrowly speaking, EM refers to the stock markets of developing countries. The purpose of this article is to further analyze the characteristics of emerging markets, I am going to focus on the broad economic aspect of EM, which refers to some developing countries like Brazil, Russia, India, China. (BRICs). I would like to separate this article into three different parts. In the first part, I discuss the implications of emerging markets and why people choose to invest in them. The second part is the central theme of the article. In this part, I focus on the main characteristics of EM. After examining all the characteristics, I make a conclusion about the whole paper and put forward several suggestions for ways governments and investment companies can cooperate together to make contributions to making the markets more mature. Emerging market countries mainly contain dozens of developing countries, which are widely distributed in Asia, Latin America, and Eastern Europe; especially the BRICs (Brazil, Russia, India, China) Bruner et al (2003) classify the world economy in the following way: developed markets, emerging markets, frontier markets and unclassified markets. In the past few decades, vary many developed countries and companies have chosen to invest a large portion of their budget in EM because developing countries have account for half of the global GDP index (David 2010). Furthermore, Emerging markets typically have low labor costs and abundant natural resources. For instance, diamonds in South Africa are huge and bauxite is a major resource in Brazil (Tamer, Gary and John 2007). Because the sharply high growth of emerging markets, the different features of...

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