MN20599

Contact: T.A.Liedong@bath.ac.uk

Aim: To have a good understanding of what emerging markets are to strategize for settling/ using
emerging markets.

Assessment:

30% Coursework – 14th December

 5-6 Students (choose by 20th Oct), 2500 worde no leeway

 This is a report not essay, you need to have subheadings and headings in the report
 Essay feedback – November 17
 Choose a failed/thriving company in an emerging market
 DO NOT TREAT THIS AS A PESTLE ANALYSIS

70% Exam – Essay type (choose 2/3)

Lecture 1 – What are emerging markets?

Countries experiencing a transition phase from developing markets to developed market due to rapid
growth.

Features:

• steady growth in GDP

• Increased integration with the world

• Started an economic reform process aimed at alleviating problems, e.g., poverty, poor
infrastructure, and overpopulation.

Who are the EMs?

BRICS Next 11
Brazil Bangladesh Nigeria
Russia Egypt Pakistan
India Indonesia the Philippines
China Iran South Korea
South Africa Mexico Turkey
Vietnam
New Frontier economies MINT
Chile, Pakistan, Mexico,
Egypt, Peru, Indonesia,
Indonesia, Philippines, Nigeria, and
Malaysia, Thailand, Turkey
Mexico, Turkey
Least Developed Emerging Market Advanced market

Least Developed Frontier Economies + Next 11 Emerging market

To Note: China surpasses the world in terms of economic growth and GDP but because of their social
reforms, policies, welfare and wages they are still “Developing”

Could income inequality be an indicator of an emerging market?

Are Advanced countries: UK, EU, US really advanced though?
A way to distinguish between developed and developing countries is the kind of policies they have
for goods. An advanced economy will have robust standards, policies and checks for any commodity.

However Developing countries will have lesser transparency and information.

Institutional features of Ems:

- Information asymmetry
- Adverse selection
- Uncertainty
- Weak market supporting institution
- High transaction cots
- Relationship based transaction
Its not about what you know, but who you know!

Why do we NEED EMs?

1. Source for
a. Cheap labour
b. Resources
2. Manufacturing bases
3. Builders or acquirers of global brand (Disney plus hotstar, Tata)
4. Investors and financiers for advanced economies

Despite the weaknesses in emerging markets, these markets have prospects

pink advanced, Blue developing, gray underdeveloped