The Best of Both Worlds: Accessing Emerging Economies by Investing in Developed Markets

Author(s):  
Joon Woo Bae ◽  
Redouane Elkamhi ◽  
Mikhail Simutin
2016 ◽  
Vol 32 (7) ◽  
pp. 11-13 ◽  

Purpose This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies. Design/methodology/approach This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context. Findings Organizational success depends on efficient performance in a variety of areas and functions. Marketing is undoubtedly one of the most significant. It showcases a firm’s products and services and aims to develop positive perceptions toward them in consumers’ minds. Development and implementation of effective marketing strategies is therefore imperative. Such strategies must address the needs and requirements of target markets, ensure that any strategy is appropriate to the market environment where it is utilized and play to the strengths of the company’s resources and competences. Until recently, marketing strategies have been almost exclusively confined to developed markets. But the impact of globalization has resulted in competition becoming the norm in many emerging economies too. Practical implications The paper provides strategic insights and practical thinking that have influenced some of the world’s leading organizations. Originality/value The briefing saves busy executives and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy-to-digest format.


2015 ◽  
Vol 19 (01) ◽  
pp. 183-202 ◽  
Author(s):  
Yuanyi Amy Chen ◽  
Xinran Joyce Wang ◽  
Michael N. Young

The case describes Geely Automotive's strategy to grow from an unknown Chinese refrigerator manufacturer into a global international player. A big step toward Geely's internationalization was its acquisition of Volvo Car Corporation in 2010. The acquisition prompted the largest profits and most intense technology transfer in Geely's history. But it also created conflicts between the two merging organizations including differences over leadership style, resource sharing, and branding strategy. The case discusses the synergies and challenges encountered by Geely and Volvo and illustrates the details of the acquisition. The case also provides lessons for other enterprises from emerging economies that are increasingly wishing to expand to well-developed markets such as America and Europe.


Subject Prospects for emerging economies in 2019. Significance Economic activity in emerging markets (EMs) is growing solidly but tighter global monetary conditions, weaker trade flows and slower developed-markets growth next year will weigh on activity.


Author(s):  
David M. Gilfoil

This paper studies usage patterns of global sellers and buyers using five forms of Web 2.0 social broadcast behaviors - blogging, micro-blogging, social networking, online video, and online photo uploading. A survey and analysis of the number of people using these tools to sell something (sellers), as compared those people using these same tools to buy something (buyers), is conducted on an emerging vs developed market basis. The data is obtained from an ongoing panel study and is a continuation of research already published in this area. Findings show that the tools are used quite differentially into emerging vs. developed markets. Social networking and micro-blogging platforms are used significantly more in emerging economies (regardless of sell or buy motivation) while the other three tools exhibit no consistent usage differences across economies. Findings also show that these same two platforms are favored for sell activities in emerging economies vs. developed economies. Blogging and micro-blogging are significantly favored tools of choice where buying is the motivation - blogging is favored by emerging economies and micro-blogging is favored by developed economies. Interestingly, photo uploading is the only tool which showed no differential usage across emerging/developed economies for any kind of sell or buy activity. Average sell/buy usage data for each social broadcast behavior is reported for each country in the emerging and developed markets. In order to better understand the eWOM implications of the current market participation conditions, some areas requiring further investigation are suggested.


2019 ◽  
Vol 74 (5) ◽  
pp. 2579-2617 ◽  
Author(s):  
JOON WOO BAE ◽  
REDOUANE ELKAMHI ◽  
MIKHAIL SIMUTIN

2018 ◽  
Vol 13 (5) ◽  
pp. 1330-1347 ◽  
Author(s):  
Liu Wang ◽  
Shaomin Li

Purpose Amid the rising concerns about the unbalanced globalization, there has been a renewed interest in examining the pattern of international trade and investment, especially between emerging and mature economies. In this study, the purpose of this paper is to examine the role of different institutional and market-related determinants in shaping the pattern and mode of foreign investments in emerging and developed markets. Design/methodology/approach The empirical investigation is based on a balanced panel sample of 45 countries (28 developed countries and 17 emerging economies) over an 11-year period from 2002 to 2012. A series of multivariable regressions are conducted to evaluate both the trend and the mode of foreign investment with rigorous robustness checks. Findings Overall, the authors find that market openness and capital market development are the main determinants of a country’s ability to attract foreign investment in developed countries, while the governance environment is the key consideration in emerging markets. Regarding the mode of foreign investment, the authors find that, in developed markets, foreign investors tend to choose direct investment in the countries with more open markets. In emerging markets, however, the choice between direct and indirect (portfolio) investments is mainly driven by arbitrage activities, where investors opt for portfolio investment when the stock market is undervalued. Practical implications First, the findings may aid foreign investors in their strategic choice between emerging vs mature markets based on the governance environment, market openness, capital market development and arbitrage opportunities. Second, the findings may be used to aid governments in prioritizing institutional improvement in market openness, stock market development and policies aimed at balancing different investment channels. Social implications The study may enhance the social understanding on the current debate on the winners and losers of globalization. A main complaint from mature economies is that the emerging economies took their jobs away and, therefore, they should adopt protectionism (which implies closing their own markets) in order to preserve jobs. The study shows that such a reaction may not be in the best interests of the mature economies since they will be able to attract more foreign investment (which implies creating or at least keeping more jobs) if they make their markets more open. Originality/value Existing studies on foreign investment have primarily focused on direct investment. The study examines both the direct and indirect investments and the way in which they affect the foreign investment markets in emerging and mature economies. From the institutional perspective, the authors show how the governance environment and market factors affect foreign investors’ strategic choice between direct and indirect investment, contingent upon the stage of a country’s economic and institutional development.


2004 ◽  
Vol 43 (4II) ◽  
pp. 639-649 ◽  
Author(s):  
Mohammad Farooq ◽  
Wong Wing Keung

Globalisation and financial sector reforms in developing economies have ushered in a sea change in the financial architecture of the economies. In the contemporary scenario, the activities in the financial markets and their relationships with the real sector have assumed significant importance. Correspondingly, researches are also being conducted to understand the current working of the economic and the financial system in the new scenario. Interesting results are emerging particularly for the developing countries where the markets are experiencing new relationships which are not perceived earlier. The analysis on stock markets has come to the fore since this is the most sensitive segment of the economy. The stock markets of emerging economies have been of vital importance to the global investment community. Since emerging markets are more volatile than the well developed stock market, therefore the emerging markets tend to be unrelated to one another and with the developed markets. Numerous investors worldwide select to diversify their funds across the emerging markets.


2013 ◽  
pp. 109-128 ◽  
Author(s):  
C. Rühl

This paper presents the highlights of the third annual edition of the BP Energy Outlook, which sets out BP’s view of the most likely developments in global energy markets to 2030, based on up-to-date analysis and taking into account developments of the past year. The Outlook’s overall expectation for growth in global energy demand is to be 36% higher in 2030 than in 2011 and almost all the growth coming from emerging economies. It also reflects shifting expectations of the pattern of supply, with unconventional sources — shale gas and tight oil together with heavy oil and biofuels — playing an increasingly important role and, in particular, transforming the energy balance of the US. While the fuel mix is evolving, fossil fuels will continue to be dominant. Oil, gas and coal are expected to converge on market shares of around 26—28% each by 2030, and non-fossil fuels — nuclear, hydro and renewables — on a share of around 6—7% each. By 2030, increasing production and moderating demand will result in the US being 99% self-sufficient in net energy. Meanwhile, with continuing steep economic growth, major emerging economies such as China and India will become increasingly reliant on energy imports. These shifts will have major impacts on trade balances.


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