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Which are the new emerging markets? The emerging markets are rapidly industrializing areas where the growth of the standard of living, the infrastructure of the country, as well as of demand and consuming possibilities are rising rapidly. The emerging markets are often called transition economies. These are economies which were previously highly centralized and either closed to (or highly regulated to limit) outside investment. These are markets which are only now beginning to become open to the global market and are taking their first steps on the path to becoming a market economy as we know it. China, India, several Eastern European countries and Russia are the best known examples of countries with emerging markets. An as yet not so well known area with a transitional economy rich in potential is Northern Africa i.e. Algeria, Tunisia, Morocco and Libya. An interesting aspect of the emerging markets is their loose relationship with the rest of the global economy and the manner in which they react to changes in the global economy. When an event occurs which would ordinarily have repercussions over a wide area or even a full-blown a financial crisis hits the international financial markets it does not automatically have a direct influence on the economies of the emerging markets i.e. the emerging markets can, and often do, continue to grow even if the rest of the world is going into, or even going through, a recession. |