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1.
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Definition
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Emerging markets strategies focus on
traditional fixed income, value and growth equity investments in
markets outside of the United States and Western Europe, including
Asia and Latin America as well as Eastern Europe, Africa and the
less developed Mediterranean economies. Emerging markets are highly
volatile and information relating to the securities traded in these
markets is often difficult to obtain. Such inefficient markets
offer excellent opportunities for the resourceful manager.
Other Resources:
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TD
Waterhouse:
Developing countries with relatively low per capita income,
often with above-average economic growth potential.
More…
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Soundinvesting.org:
Developing foreign markets, involving greater volatility and
higher risk than established markets.
More…
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Wikipedia:
The
term emerging markets is commonly used to describe business and
market activity in industrializing or emerging regions of the
world. Originally brought into fashion in the 1980s by then
World Bank economist Antoine van Agtmael,[1] the term is
sometimes loosely used as a replacement for emerging economies,
but really signifies a business phenomenon that is not fully
described by or constrained to geography or economic strength;
such countries are considered to be in a transitional phase
between developing and developed status. Examples of emerging
markets include China,[2] India, Mexico, Brazil, Chile much of
Southeast Asia, countries in Eastern Europe, parts of Africa and
Latin America. Emphasizing the fluid nature of the category,
political scientist Ian Bremmer defines an emerging market as "a
country where politics matters at least as much as economics to
the markets."
The research on emerging markets is diffused within management
literature. While researchers including C. K. Prahalad, George
Haley, Hernando De Soto, Usha Haley, Rajesh K Pillania and
several professors from Harvard Business School and Yale School
of Management have described activity in countries such as India
and China, how a market emerges is little understood.
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2.
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Examples, Types, or
Variations
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The term
"rapidly developing economies" is now being used to denote emerging
markets such as The United Arab Emirates, Chile and Malaysia that
are undergoing rapid growth.
In recent years, new terms have emerged to describe the largest
developing countries such as BRIC and BRIMC. These countries do not
share any common agenda, but some experts believe that they are
enjoying an increasing role in the world economy and on political
platforms.
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3.
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Formula
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4.
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Related Terms
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Balance of Trade (BoT)
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Gross Domestic Product
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Volatility
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Economy
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International Monetary Fund (IMF)
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Capitalism
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Dedicated Long Strategy
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5.
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As
Used in the Hedge Fund World
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Other Resources:
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6.
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Applications
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7.
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Misused
& Abused
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Other Resources:
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8.
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Additional Sources of Information
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Books
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News
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Scholarly Papers
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