Emerging and developing markets are descriptive of tomorrow’s hopeful global economy. An emerging market is one ready to compete with already established markets. This market is no longer in the developmental stage but is now mature enough to align themselves with other global economies.
On the other hand, a market may be only beginning to develop its resources and will have a way to go before it will be developed enough to take its place among world traders. Another way of looking at developing and emerging markets is to see them in stages, the beginning stage which is developmental and the emerging stage which is the hoped for outcome of the first.
These terms relate to markets, whether local, statewide, national or international. All markets must first be developed before they emerge into money making ventures. Today, countries still struggling to get their finances in order may be tomorrows emerging markets. What they’ll need to do to compete globally will be put together financial banks, stock markets, and regulating associations that show maturity and achievement. An example of emerging international company is China; an example of a developing country is Ethiopia.
How are international markets developed?
Established companies that want to begin an enterprise in a foreign company must know that it’s a daring venture and they must forego most of the established ways of doing business with developing and emerging markets in their own country.
Fitpress explains these difficulties: A book by David Arnold “Strategies for Entering and Developing International Markets” explains the process in depth. At first he explains how these markets differ from home markets. Mostly they concern the unknown and each business strategist must begin with the unknown and work from there. Basically, the way of doing business at home and in a foreign country differs but to a degree, they conclude.
A Forbes author asks, which next China or India? “Sure, there is plenty of action in India and China, where big boys like Microsoft (nasdaq: MSFT – news – people ), Citigroup (nyse: C – news – people ) and Intel (nasdaq: INTC – news – people ) have made deep inroads. But for entrepreneurs with vision, patience, an appetite for risk and command of a second language (or two), there are plenty of opportunities in even more exotic locales.” Which countries does Mary Crane have in mind? She shows in twenty picture slides Singapore; Hong Kong; Lithuania; Estonia; Thailand; Puerto Rico; Latvia; Malaysia; Israel; St. Lucia; Chile; South Africa; Figi; Mauritius; Antigua and Barbuda; Armenia; Georgia; Saudia Arabia; Samoa and Namibia.
Gem, founded in 1991, is an organization that is designed to help emerging markets worldwide. Fifty-five companies and 265 companies are involved. Headquarters are in Geneva, Paris and in New York. DMA is for developing markets and “works with donor agencies, governments and the wider business community in providing advice and management in its three areas of expertise – remittances, investment programmes and international development events.” This organization is based in London, but has offices in Australia, Africa, the Middle East, Europe and North America.