Challenges and strategies for doing business in emerging markets

Content type

User Generated

Uploaded By

nyugznbl

Pages

Surname 1

Student’s Name

Professor’s Name

Course

Date

Challenges and Strategies for Doing Business in Emerging Markets

Introduction

The world has seen many organizations expand into new markets, intending to increase

profitability and competitiveness. Through entering new markets, businesses enjoy the benefits

of diversification and access to more resources (Bhaumik et al. 165). One primary observation is

the high appetite for firms to enter into emerging markets. Most firms have started identifying

global markets for their products. However, it remains a challenge for most businesses to identify

successful internationalization strategies, especially while approaching emerging markets. This

study defines emerging markets and elaborates on the problems that companies encounter while

doing business in these markets. In addition, it shall propose strategies that can drive business

growth. Notably, organizations have to develop strategies to drive business growth in these

emerging markets.

What Are Emerging Markets?

Emerging markets are middle or low-income countries that have a high economic growth

potential. The financial stability of these economies is ordinarily low, and the markets are not

perfect as a result of the inefficiency of their institutional framework (Bhaumik at al. 166). The

features of the business environment differentiate emerging markets and advanced markets. The

World Bank Economic Outlook 2019 classifies Chile, Mexico, Philippines, Russia, South Africa,

China, and India as emerging markets (The World Bank Group 4). The report states that

Surname 2

economic growth in this decade would be driven by growth in emerging markets. The report

predicted a 4.9 percent growth in the investment in emerging markets (The World Bank Group

94). These economies are not only a rising force but the game-changers in the world economy.

Figure 1: Emerging markets picked up to beat advanced economies

Challenges of Doing Business in Emerging Markets

The difficulties encountered in doing business in emerging markets are many. However, it is

worth noting that the problems might vary from one economy to another as a result of changing

macroeconomic parameters.

The Political Environment

The political environment is a significant factor that determines business growth in emerging

markets. A poor political climate is characterized by oppressive regimes and political instability

that turns away investors. Although some emerging markets have succeeded in creating a

peaceful political environment that attracts investors and perpetuates business growth, some

End of Preview - Want to read all 15 pages?

Access Now

Unformatted Attachment Preview

Surname 1 Student’s Name Professor’s Name Course Date Challenges and Strategies for Doing Business in Emerging Markets Introduction The world has seen many organizations expand into new markets, intending to increase profitability and competitiveness. Through entering new markets, businesses enjoy the benefits of diversification and access to more resources (Bhaumik et al. 165). One primary observation is the high appetite for firms to enter into emerging markets. Most firms have started identifying global markets for their products. However, it remains a challenge for most businesses to identify successful internationalization strategies, especially while approaching emerging markets. This study defines emerging markets and elaborates on the problems that companies encounter while doing business in these markets. In addition, it shall propose strategies that can drive business growth. Notably, organizations have to develop strategies to drive business growth in these emerging markets. What Are Emerging Markets? Emerging markets are middle or low-income countries that have a high economic growth potential. The financial stability of these economies is ordinarily low, and the markets are not perfect as a result of the inefficiency of their institutional framework (Bhaumik at al. 166). The features of the business environment differentiate emerging markets and advanced markets. The World Bank Economic Outlook 2019 classifies Chile, Mexico, Philippines, Russia, South Africa, ...
Purchase document to see full attachment