Comparison between emerging market and developed market

Essay Writer

31 January 2007

Comparison Between Emerging Developed Markets

The emerging market is any market which is rapidly taking place in a developing or undeveloped country . The market taking place outside United States , Western Europe , Australia , Canada is emerging market . The countries that are dominating the world through their policies and goods are considered developed market economies

It is easier to determine which countries are not emerging market economies than it is to determine those that are . Accordingly , the industrial economies do not qualify for the emerging market status [banner_entry_middle]

br because for them the emergence stage of growth has been crossed and now they are economies with matured market institutions . That excludes all the members of the Organization for Economic Cooperation and Development (OECD ) – except for Korea and Turkey (Miller 43 : 1998 . These are highly developed market economies with matured institutions . The second country-group that is a candidate for exclusion comprises those economies that have not as yet developed as market economies . Should the residual economies be called the emerging market economies ? Decidedly not . Of this residual group , the countries that can be classified as emerging market economies are those whose economies are gradually developing and approaching an advanced stage in structural reforms These countries have been liberalizing their economies for so long that a qualitative transformation in their economies is either about to take place or has already taken place . This qualitative transformation in turn enables them to integrate with the global economy and to take advantage of global factors (particularly capital ) and trade flows Determining the emerging market status of an economy is a matter of establishing the openness and maturity of its institutions , as well as whether the economy in question adheres to the rules , laws and culture of an open-market economy

Clearly , there is no such thing as a typical ‘ emerging market . Some areas are large , and others are quite small . Some new markets are rich in undeveloped resources , and an even greater number of countries are resource limited . Some markets emerge because of political action , and others begin their development cycle for strictly economic reasons . Some new economies are in advanced stages of growth others are in the preemergent phase . Still other potential new trading areas require major structural changes before they can become substantial commercial economies . Other large markets such as the newly industrialized states of the former Soviet Union also provide considerable opportunities for future market development because of their large , well-educated populations and high levels of agricultural and industrial diversity Some of the countries of Eastern Europe , particularly the Czech Republic and Hungary , with their market-driven economies , also exhibit very promising growth potential . Even the smaller republics of Central Asia offer excellent potential for companies with products suited to their resource-rich developing economies . These and other emerging markets offer a diverse collection of new trading areas that also provide a dramatic variance in size , location , level of development , and product requirements . In spite of individual differences , all emerging markets are… [banner_entry_footer]