In: Finance
What will you do if you are a new business and you want to invest in emerging market ? ( convince investing in emerging market )
Investing in emerging market will lead to -
1. Increase in the demand for new kinds of goods.
2. Focusing on brand establishment.
3. Making business more important in the economy.
4. Eliminating competition.
5. Expanding capacity and capability of the business.
6. Provides a buffer against recession.
Investing in emerging markets would create more investment opportunities, along with facing additional challenges and uncertainty.
On the other side, emerging markets could be volatile and consider for long term investors.
So while investing in emerging markets, one have to look at the fundamentals of the economy. So investors must reduce risk through diversification.
So for a new business that want to invest in emerging market can be through mutual funds.
Emerging markets include china, brazil, India, Russia, Mexico and others. While investing in emerging markets, number of precautions must be taken such as local knowledge and experience. Various political and cultural dimensions along with legal and regulatory dimensions of the market are important to understand.