Emerging Markets

73-421
Introduction
Laurence Ales
1
This version: August 26, 2013
1
These materials are subject to copyright and are being provided for the personal educational use by
students enrolled in this course. Any other use, including further reproduction and distribution of the
materials (whether in hard copy or electronic form) is strictly prohibited. As an example, you may not
copy any of these materials and upload them to any other web sites without the prior permission of the
applicable copyright holder.
Your Questions
Slide 2 of 15
In the News
8/25/13 7:40 PM P1-BM657_EMERGE_G_20130811183032.jpg 555!398 pixels
Page 1 of 1 http://si.wsj.net/public/resources/images/P1-BM657_EMERGE_G_20130811183032.jpg
Slide 3 of 15
In the News
Source: CNN
Slide 4 of 15
Emerging Kind of-Growing Markets
73-421
Introduction
Laurence Ales
This version: August 26, 2013
1
These materials are subject to copyright and are being provided for the personal educational use by
students enrolled in this course. Any other use, including further reproduction and distribution of the
materials (whether in hard copy or electronic form) is strictly prohibited. As an example, you may not
copy any of these materials and upload them to any other web sites without the prior permission of the
applicable copyright holder.
The syllabus
Make sure read the syllabus!
Slide 6 of 15
Details about the course
The class: MW 3:00PM 4:20PM WEH 4709
Oce Hours: TH 2:30-4:30 PM
Textbook: No textbook required, some sources used:
Macroeconomics of emerging markets, Peter Montiel;
Great depressions of the twentieth century, Kehoe-Prescott;
Barriers to Riches, Stephen Parente and Ed Prescott;
The Other Path: The Invisible Revolution in the Third
World, Hernando De Soto;
Investing in Emerging Markets: The BRIC Economies and
Beyond, Marr and Reynard;
Multinational Firms in the World Economy,
Giorgio Navaretti and Anthony Venables.
Slide 7 of 15
Hw, Grading and Exams
3 HW - 25% of grade
1 Midterm - 20% of grade
1 Class Presentation - 25%
1 Final - 25% of grade (check CMU website for dates)
5% for attendance and participation +
1% for nding WEH 4709
Grade me:
Online, live, anonymous feedback system:
http://tinyurl.com/comments73421
Slide 8 of 15
Class Presentation
At the end of the semester you will be asked to present in front of the
class a short original study on a emerging market of your choice.
Presentations will be made by groups of 4 people.
Last 20/30 min
Must display in depth knowledge of the country
Must display usage of tools learned during the course
Slide 9 of 15
What will we talk about in this course? I/II
Part I
Lecture 1: Introduction. Country Classication
Lecture 2: Growth Accounting for Emerging markets
Lecture 3: Case study: The 80s: Chile and Mexico
Lecture 4: Case study: Peru, The other path
Lecture 5: The Underground Economy
Lecture 6: From developing to emerging markets
Lecture 7: Studies from the McKinsey Global Institute:
focus on Productivity
Lecture 8: Diagnosis for emerging markets:
Business Cycle Accounting
Slide 10 of 15
What will we talk about in this course? I/II
Part II
Lecture 9: Trade and emerging Markets
Lecture 10: International nance and emerging markets
Lecture 11: China
Lecture 12: FDI and Firms in the global economy
Lecture 13: Debt and Debt Crisis in Emerging Market
Lecture 14: Commodity Prices and Emerging markets
Slide 11 of 15
What you will get from this course?
By the end of this course the student will be able to...
1 ...describe the properties of an emerging market.
2 ...identify and quantify the sources of growth that shape
the behavior an emerging market economy.
3 ...understand how property rights, corruption and bureaucracy
impact the operation of businesses in emerging markets.
4 ...understand how monetary and trade and exchange rate policies
aect rms and household in emerging market economies.
5 ...understand the potential sources that might trigger a crisis in a
emerging market.
6 ...understand the challenges and the opportunities facing
multinational rms operating in emerging markets.
Slide 12 of 15
Testing the anonym-quiz!
On you cellphone go to: http://tinyurl.com/73421quiz
Answer the following:
If you choose an answer at random from the ones below,
what is your probability of being correct?
1) 25%
2) 25%
3) 60%
4) 50%
Slide 13 of 15
Testing the anonym-quiz!: new question
On you cellphone go to: http://tinyurl.com/73421quiz
Answer the following:
?sdrawkcab nettirw iP ni srebmun ruof tsrif eht era tahW
1) 414.3
2) 141.3
3) 314.1
4) 411.3
Source: http://www.impossible-quiz.com/
Slide 14 of 15
Lets Start!
Slide 15 of 15