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The Haye Markers – features and dynamics of emerging markets

The term ‘emerging markets’ was coined by International Finance Corporation (IFC) officials in 1981 to provide such markets a more uplifting and optimistic name, because previously these countries often were negatively referred to as ‘poor countries’, ‘non-developed countries’ or ‘less-developed countries’ (Mobius, 2015).

Arnold and Quelch (1998) define ‘emerging markets’ as countries that satisfy two criteria: a rapid pace of economic development, and government policies favouring economic liberalisation and the adoption of a free market system.

‘Emerging markets are countries which are in a transition phase from developing to developed markets due to rapid growth and industrialisation. Hence markets which have: (a) started an economic reform process aimed at alleviating problems, for example of poverty, poor infrastructure and overpopulation; (b) achieved a steady growth of gross national product per capita (GDP); and (c) increased integration in the global economy, may truly be called EMs’ (Cavusgil, Ghauri and Akcal 2013: 5)

An ‘alphabet soup’ of emerging markets

BRICS (Brazil, Russia, India, China, South Africa)

MINT (Mexico, Indonesia, Nigeria and Turkey)

MIST (Mexico, Indonesia, South Korea and Turkey)

MIKT (Mexico, Indonesia, South Korea and Turkey)

CIVETS (Columbia, Indonesia, Vietnam and Egypt, Turkey, South Africa)

Next 11 (Bangladesh, Egypt, Indonesia, Iran, South Korea, Mexico, Nigeria, Pakistan, Philippines, Turkey, Vietnam)

(Spence, Palmer and Oliver 2014)

The importance of emerging markets

According to the IMF (2016), 85% of the World’s population live in emerging countries (markets).

They account for 60% of global GDP and have contributed to more than 80% of the global growth since the financial crisis in 2008 as well as being the main driver behind the significant reduction in global poverty (China alone lifted out 600 million people from poverty).

By 2025, annual consumption in emerging markets will reach $30 trillion – the biggest growth opportunity in the history of capitalism. In developing countries, the emerging class – nearly two billion strong – spends a total of $6.9 trillion annually.

Your task

Your task in this section is to compare and contrast the market attractiveness of two of the emerging markets from the list above.

How are the factors that make them attractive for global business investment, similar or different?

You are expected to carry out some independent research on the macro market environments of these two countries, using relevant and up-to-date evidence data and information. Share your findings.


Arnold, D.J. and Quelch, J.A. (1998) ‘New strategies in emerging markets’. Sloan Management Review [online] 40 (1), 7‐20. available from https://search.proquest.com/docview/224965007?pq-origsite=gscholar [10 May 2018]

Cavusgil, S. T., Ghauri, P. N, and Akcal, A. A. (2013) Doing Business in emerging Markets. 2nd edn. Los Angeles: Sage

Lagarde, C. (2016) ‘The Role of Emerging Markets in a New Global Partnership for Growth by IMF Managing Director Christine Lagarde’. International Monetary Fund [online] 4 February. available from http://www.imf.org/en/News/Articles/2015/09/28/04/53/sp020416 [10 May 2018]

Mobius, M. (2015) ‘Emerging Markets: 30 Years of Growth’. Franklin Templeton Investments [online] available from https://www.franklintempleton.ch/downloadsServlet?docid=i677yro7 [10 May 2018]

Spence, P., Palmer, D., and Oliver, M. (2014), ‘Beyond the BRICS: The guide to every emerging market acronym’. The Daily Telegraph [online] 13 October. available from https://www.telegraph.co.uk/finance/economics/11158386/Beyond-the-BRICs-the-guide-to-every-emerging-market-acronym.html [10 May 2018]

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The Global Business Environment: Evolution and Dynamics

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