What is an Emerging Market?
What is an Emerging Market?
Take a second and try to picture what a publicly traded company looks like. Chances are you're thinking of a towering office building in New York City, London or maybe even Toronto. But it's not 1900 any more, and the world is as global as ever.
Today, as an investor, you are not limited to American, English and Canadian economies. With the rise of globalization and the Internet, you can now invest in businesses nearly anywhere in the world. The ability to invest practically anywhere is the basis for this course.
So what is an emerging market exactly?
Emerging markets are nations where business activity is in the process of rapid growth and expansion.
- The country has recently shifted towards a democratic government with a free economy
- The country is newly industrialized
- The country is developing into a more global economy
Whatever the case may be, these changes lead to the development of new industries, technology, trade, and stronger currencies.
This is happening in countries all over the world. The five biggest emerging markets today include China, India, Indonesia, Brazil, and Russia. According to the World Bank, by 2020, these five emerging markets will more than double their share of world trade output since 1992: from 7.8% to 16.1%.
Emerging markets provide many new opportunities for investors. In this mission, we will look at some of these opportunities – as well as their risks – and how you can take advantage of them.
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