...growth and that with the globalization phenomenon became important and attractive markets to the foreign companies to develop business and investments. According to Cisco (2006) these countries which are known as emerging markets share certain common factors: They are countries with accelerated economic and GDP growth; rapid growth in broadband investments; and growing IT and communications infrastructures. These countries are in progress, they are searching to become stronger and have a more responsible economic performance as well as transparency and efficiency in the capital market. This means that even though emerging markets are growing and improving they still can have some political, economic and social problems that can represent a risk to the foreign companies if they invest on them. Through this essay we will explain the advantages and disadvantages of developing partners in emerging markets. We will analyze the opportunities that can represent doing business with them and also the risks that a company can have when they enter in those markets.
Today emerging markets are still considered to have a low to middle per capita income but, according to Ream Heakal (2008), such countries constitute approximately 80% of the global population, representing about 20% of the world's economies. These countries are also considered emerging markets because of their developments and reforms. They are also characterized of having an increase in both local and foreign investment. This shows that the country indicates that it has been able to build confidence in the local economy. Moreover, according to Ream Heakal (2008) foreign investment is a signal that the world has begun to take notice of the emerging market and this capital flow adds volume to the country’s stock market and long-term investment to the infrastructure. They are countries in the process of moving from...
