ing serious trouble. As the 1990s ended, emerging world markets were experiencing low rates of growth reaching levels of two percent in 1997 and 1998. The collapse of the Russian ruble and subsequent reactions by other emerging market economies has led to some soul searching about emerging markets among many American businesses.
McDonald (1999) asserts that Asian and Russian economic woes have caused a ripple effect around the world that directly impacts upon entrepreneurial American businesses seeking new opportunities. Nevertheless, McDonald (1999) believes that the developing nations will emerge stronger and ready to compete more effectively in the global economy. It may take decades for the emerging markets of developing countries to build the regulatory agencies and financial systems capable of coping with volatile private capital flows. Despite this, emerging markets comprise 60 percent of the worldÆs population, in which there are over 600 million better-off consumers with annual incomes of US $5,000 or more. Over the next ten years, the emerging countries will add another 500 million people and will have millions of businesses interested in purchasing products and services.
From McDonaldÆs (1999) perspective, government and the private sector must look closely at such elements in emerging markets or developing countries as economies, government, infrastructure, and cultural forces. These elements create uncertainty because they must be addressed in any successful foreign marketing strategy.
Anne Gilbert (1999, p. 47) stated that ôAmerican entrepreneurs are riding a new wave of financing these days: Euromoney.ö European investors are racing to put cash into promising new firms, particularly those in the high technology sector or those with a strong Internet presence. It is interesting, says Gilbert (1999), that while many European countries are home to aggressive young entrepreneurs also searching ...