Class notes # 13

Class notes # 13 - Emerging Markets 1. Objectives a....

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
Emerging Markets 1. Objectives a. Discuss important characteristics of emerging markets b. Discuss the opportunities presented by emerging markets c. Discuss the special risks faced by firms entering emerging markets d. Case: Tesco PLC in India 2. SOME Characteristics of Emerging Markets a. Low per capita income i. May have concentrations of wealth but not well distributed ii. Why would a company care about this company? b. Significant growth potential i. Companies care about this c. Corruption d. Political Risk: coups, violence and instability i. Define in respects to the political dangers that can affect the business e. Policy risk: arbitrary changes in policy f. Limited political and economic freedoms i. All of these factors of course vary dramatically by country 3. To enter of not to enter? a. Countries will vary on these dimensions, so a firm must consider the specific features of each country for example perform CAGE analysis b. Some countries have such oppressive or unstable government that none merging mar be a better term from them i. Afghanistan, Somalia, Zimbabwe, Congo, Haiti ii. A CAGE analysis should easily exclude them from further consideration 4. Opportunity in merging markets a. Underdeveloped markets provide at least two sorts of opportunities: manufacturing and expansion
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
b. Manufacturing for export
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 11/29/2010 for the course PSC 222 taught by Professor Jing during the Spring '10 term at Rochester.

Page1 / 4

Class notes # 13 - Emerging Markets 1. Objectives a....

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online