AFM333 Lecture Notes - Lecture 10: Emerging Markets, Disposable And Discretionary Income, China Resources

• School: University of Waterloo
• Department: Accounting & Financial Management
• Course: AFM333
• Professor: clarkhampton

Document Summary

Emerging markets are like china, turkey, india, that are experiencing rapid growth. Emerging markets have high risk environments from evolving commercial infrastructure and legal systems but also have attractive markets with low cost manufacturing. Emerging markets are beginning to produce top competitive firms, challenging the advanced economies. Many of these competitive firms (challengers) are family run so it is easy to make quick decisions and cheap to manufacture in their home countries. Other challengers benefit from large resource pools, an example is russia. Advanced economies are post industrial countries characterized by high per capita income, highly competitive industries, and well developed commercial infrastructures (e. g. canada, australia, japan) Developing economies are low income countries characterized by limited industrialization and stagnant economies, largest group, (e. g. bangladesh, Emerging economies are former developing economies that have achieved substantial industrialization, modernization, and rapid economic growth since the 1980s (e. g. brazil, russia, india, china) Advanced economies are the most visible, being the most brightly lit.