Role of Emerging Markets in International Marketing

According to Paul Klebnikov, sales of personal computers in emerging markets grew more than 80 percent from 1992 to 1994 as capitalism and an emerging middle class in these nations drives demand. Emerging countries have banks, securities exchanges and other infrastructure components that need more sophisticated technologies, and manufacturers of personal computers are taking advantage of the opportunity. In 1995, South Korea and China both bought more than one million personal computers, a total that Brazil may well be in a position to match. India, Indonesia, Thailand and Malaysia are seen as nations which will shortly boast strong demand for personal computers, as well.

Klebnikov also notes that most personal computer sales in emerging markets are from local companies located in these market

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markets. Such investment, if it indeed yields higher returns, offers investors attractive returns which can be used for other purposes. In the case of corporate investors, this can offer an attractive way for companies to enter the emerging markets while realizing a strong return in the process. By purchasing stock in companies in emerging markets, companies can gain an equity interest without necessarily taking on all of the risk associated with actually starting a venture without a partner. Such investment may be regulated by the country in question, however, and some companies may choose instead to invest in mutual funds without becoming direct investors in companies. In this case, the investment helps boost the capital resources available to the investing company for other purposes. In either instance, the investing company is able to take advantage of the emerging market without necessarily taking on the risk of actually entering the market. However, international investing is never without risk, and emerging markets can be particularly risky. While there can be a healthy amount of return in these markets, the risk is present because they are emerging, not developed, markets, and because the economies which support t
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Approximate Word count = 2833
Approximate Pages = 11 (250 words per page)

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