On Emerging Markets
Posted By Jean on February 24, 2017
Very difficult to ignore the relevance the scope which in recent years has generated emerging markets, its role, implications that generate and all those aspects that enclose. Considering the importance of the topic, we have considered it important to present an interesting article on this topic, Wharton School of the University of Pennsylvania says, that the term emerging markets already has completed 25 years and refers to the part of the world that is in phase of rapid economic expansion. Dozens of countries can be considered as emerging, although they are developing at their own pace and suffer their particular setbacks in the process. Now, as many of these markets give samples have a strong middle class and growing, analysts are wondering if the term have not lost part of its meaning. At first, the expression applied to the Asian economies with a fast-paced growth, as well as to countries of Eastern European after the fall of the Berlin wall. It grew interest in the economies of market, investors began to look at Latin America in search of emerging markets and, finally, towards countries such as Indonesia, Thailand, China, India and Russia.
For Gerald McDermott, Wharton Professor of management the term continues by expressing a reality that does not allow us to refer us to the developed world, on the one hand, and the world in development on the other. Countries that are big promises and which represent a great potential we have in mind. They are growing, but they have not yet reached the developed world. Van Agtmae adds, that at the beginning, the definition applied to countries securities markets with an income per capita maximum of $10,000. Those specific numerical parameters immediately disappeared. The term emerging markets became synonymous of emerging economies and already did not refer to the rent or other statistical measures. The truth than to Wharton professors, the most important element of the definition of emerging economy is the strength of their economic and political institutions, such as the rule of law, the existence of regulatory controls and the execution of contracts.
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