Investing in Emerging Markets: Is the Time Right for You or Your Business?

Ben Steverman’s article in BusinessWeek provides sage advice as you consider your investment opportunities for 2010+.  It has implications for both personal financial investments, but also provides insights into where some growth opportunities are as you consider potential global expansion.

Steverman writes that ” a way to invest in emerging markets is to focus on companies that are growing rapidly, have sustainable business models, and are industry leaders Seek profit from strong economies in emerging markets, where demographics and government policies are driving impressive growth. That’s advice barely dented by the recession and financial crisis.”  As he further points out, however, is that “these markets are particularly subject to currency swings, overheating, and unexpected shocks”, so enter with your eyes wide open.
From a global expansion perspective, this article’s emphasis on Brazil and India is not a surprise.  The middle class is growing in these markets, and the IT infrastructure is growing.  Both of these elements should make these markets more attractive to company’s looking to realize incremental growth through global expansion. 
Fast growing new markets are sure to be attractive to firms seeking growth; however, the “devil is in the details”, so be sure to gain a thorough understanding of the operating requirements before entering.  Get outside advice if you’re not familiar with a market and invest in market research to understand what drives purchase behavior.

Posted via web from FASTInnovators


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