What we can learn from the Emerging markets and their potent

What we can learn from the Emerging markets and their potential and what are the factors contributing to their rapid growth?

Solution

Emerging markets are the economies that are expanding rapidly and creating attractive proposition for the investment from overseas investors and MNCs. These emerging market economies, represent investment friendly climate, favorable government policies and political willingness to attract the companies and let them work with benefits and tax holidays. So, these emerging markets are creating opportunities for growth and these markets are yet to be fully tapped, so it has huge potential for growth. These markets progressively open up the sectors for globalization and international trade. Hence, it represents huge potential to invest, create employment and earn huge profit. It makes a win-win scenario for companies as well as the economy to grow. The example of emerging markets are Brazil, Russia, India, China and South Africa.
There are different factors that are contributing to the rapid growth of these emerging markets. The first factor is the low cost labor availability that can work for less wage level. It helps the companies to reduce their cost and invest in these markets. The second factor is the suitable macro and micro environment. It makes the economy’s framework to help the companies and create a suitable investment climate. The third factor is favorable government policy and work towards the ease of business. It will help offering different benefits to the MNCs if they bring investments. The fourth factor is the growing ability and purchasing power of the consumers to buy goods and services. It creates a natural domestic market for the companies, that fuels the growth. The fifth factor is the presence of other markets in nearby areas that can be tapped while being present in these countries.