Emerging Markets
Emerging markets are countries that are restructuring their economies along market-oriented lines and offer a wealth of opportunities in trade, technology transfers, and foreign direct investment. According to the World Bank, the five biggest emerging markets are China, India, Indonesia, Brazil and Russia. Other countries that are also considered as emerging markets include Mexico, Argentina, South Africa, Poland, Turkey, and South Korea. These countries made a critical transition from a developing country to an emerging market. Each of them is important as an individual market and the combined effect of the group as a whole will change the face of global economics and politics.
Emerging markets stand out due to four major characteristics. First, they are regional economic powerhouses with large populations, large resource bases, and large markets. Their economic success will spur development in the countries around them; but if they experience an economic crisis, they can bring their neighbors down with them. Second, they are transitional societies that are undertaking domestic economic and political reforms. They adopt open door policies to replace their traditional state interventionist policies that failed to produce sustainable economic growth. Third, they are the world's fastest growing economies, contributing to a great deal of the world's explosive growth of trade. By 2020, the five biggest emerging markets' share of world output will double to 16.1 percent from 7.8 percent in 1992. They will also become more significant buyers of goods and services than industrialized countries. Fourth, they are critical participants in the world's major political, economic, and social affairs. They are seeking a larger voice in international politics and a bigger slice of the global economic pie.
Until now it had been widely assumed that globalization was driven by the West and imposed on the rest. Bosses in New York, London and Paris would control the process from their glass towers, and Western consumers would reap most of the benefits. This is changing fast. Muscular emerging-market champions such as India’s Arcelor Mittal in steel and Mexico’s Cemex in cement are gobbling up Western companies. Brainy ones such as Infosys and Wipro are taking over office work. And consumers in developing countries are getting richer faster than their equivalents in the West. In some cases the traditional global supply chain is even being reversed: Embraer buys many of its component parts from the West and does the assembly work in Brazil.
Old assumptions about innovation are also being challenged. People in the West like to believe that their companies cook up new ideas in their laboratories at home and then export them to the developing world, which makes it easier to accept job losses in manufacturing. But this is proving less true by the day. Western companies are embracing “polycentric innovation” as they spread their R&D centres around the world. And non-Western companies are becoming powerhouses of innovation in everything from telecoms to computers.
Analysis the increasing importance of Emerging Market, the current issue on AIMA Journal for Management and Research focuses on this issue. The current issue has article from different aspect for emerging market ranging from Finance, economics , HR issues
The First article titled “A Comparative Study of Structural Shift in Venture Capital Flows among USA, India and China” by Dr J K Singh & Ms Ritu Chhouker highlights the shift in economic landscape and flow of venture capital flows from developed countries to emerging economics in Asia. Various statistical and econometric tools are used in this paper to observe the structural shift and predict the shifting pattern. The statistical tests employed justify the hypothesis. The paper can have wide application in venture capital investment.
The Second article titled “The Anatomy of Financial Crisis: Evidence From The Emerging Markets” by Anindita Chakraborty, Ravindra Pathak & Alok Srivastava. Studies the anatomy of recent financial crisis and its impact on stock exchange. The researcher studies the return and volatility before the financial crisis and during recession in emerging markets. The major markets studied are Spain, Brazil, Chile, Italy, Switzerland, and Indonesia.
The Third article titled “Emergence of Environmental Commodity markets in India” by Prof. Trilok Nath Shukla is an interesting paper on climate change. The paper highlights the investment in energy systems; it raises concern on carbon emission mitigation funds with primary focus on larger developing countries. The paper investigates the market for trading carbon emission and carbon financing. The paper is futuristic dealing with emerging of new multi commodity exchange market.
The Fourth article titled “Green Markets: A bungled opportunity?” Praveen Balakrishnan Nair is a conceptual paper examining the growth of green marketing. It is critically evaluated the theory and practices of this new discipline in the current environment. The paper draws attention on issues and challenges ahead.
As always your views, suggestions, opinions are welcomed to make AJMR the most read and referred journal.
Prof. Anuja Pandey
Managing Editor
AIMA Journal for Management Research
All India Management Association
