Investment Enigma in Emerging Markets
[INVESTMENT ENIGMA IN
EMERGING MARKETS]
Abstract:
The correlation between the advent of big organized players and the unorganized markets in emerging economies has been the centrifuge of discussion for many years. The decision for investment in these economies is a rather precarious one for the big players. While on one hand they have a plethora of opportunities considering the variety in labor demographics and the economic appetite, the volatility of the economy poses an unprecedented threat.
The retail sector of any economy would be attractive for foreign investors when two very basic elements are in place: supply of goods in the concerned sector and infrastructure to facilitate distribution. In the backdrop of these two pre-requisites, this paper aims to examine the investment potential in the retail sectors of all emerging economies, particularly the following:
•
Brazil
•
India
•
Pakistan
•
South Africa
•
Russia
•
Turkey
The basic factors that determine and influence the supply of goods in any economy include demographics of the labor population, technological advances in various sectors, money in circulation in the respective sector and regulatory norms.
In order to study the infrastructure support, factors including presence of unorganized retail networks and socio-political stability in the countries would provide interesting insights. This paper studies the current potential of the emerging countries and the scope for their development with respect to the above stated test factors. It takes into account the prevailing investment climate in each of these countries and goes about the analysis in a four-fold fashion.
•
Defining the opportunities and threats
•
Analyzing the existing regulatory norms
•
Analyzing market appetite
•
Forecasting investments based on trend patterning
It then moves on to making an attempt at understanding the attractiveness of the countries
EMERGING MARKETS]
Abstract:
The correlation between the advent of big organized players and the unorganized markets in emerging economies has been the centrifuge of discussion for many years. The decision for investment in these economies is a rather precarious one for the big players. While on one hand they have a plethora of opportunities considering the variety in labor demographics and the economic appetite, the volatility of the economy poses an unprecedented threat.
The retail sector of any economy would be attractive for foreign investors when two very basic elements are in place: supply of goods in the concerned sector and infrastructure to facilitate distribution. In the backdrop of these two pre-requisites, this paper aims to examine the investment potential in the retail sectors of all emerging economies, particularly the following:
•
Brazil
•
India
•
Pakistan
•
South Africa
•
Russia
•
Turkey
The basic factors that determine and influence the supply of goods in any economy include demographics of the labor population, technological advances in various sectors, money in circulation in the respective sector and regulatory norms.
In order to study the infrastructure support, factors including presence of unorganized retail networks and socio-political stability in the countries would provide interesting insights. This paper studies the current potential of the emerging countries and the scope for their development with respect to the above stated test factors. It takes into account the prevailing investment climate in each of these countries and goes about the analysis in a four-fold fashion.
•
Defining the opportunities and threats
•
Analyzing the existing regulatory norms
•
Analyzing market appetite
•
Forecasting investments based on trend patterning
It then moves on to making an attempt at understanding the attractiveness of the countries