Decision Making Techniques Term Paper Group 8

Submitted By mcmer44
Words: 2990
Pages: 12

center23002311409410012100center300003017520Potential emerging marketsAn analysis of five potential countries.
9410036300Potential emerging marketsAn analysis of five potential countries.

Micah Robert
4572006858000Abstract
Using Expert Choice software as well as an AHP decision-making technique, an analysis was done of five potential markets to determine which emerging market was the most suitable market for a business to enter. A basic overview of each country is included.
010000Abstract
Using Expert Choice software as well as an AHP decision-making technique, an analysis was done of five potential markets to determine which emerging market was the most suitable market for a business to enter. A basic overview of each country is included.

Darcie Sanabria
Allison Ward
Micah Roberts
Chitra Subedi
Anshudhar Siwach
In 1981, economists at the International Finance Corporation (IFC) coined the term emerging markets. This was the time when the group was promoting the first mutual fund investments in developing countries (Khanna and Palepu). An emerging market is defined as a country with low-to-middle per capita income as measured by the World Bank. Emerging markets are usually considered to be in a transitional phase toward developed-market (i.e., industrialized) status and in the process of building liquid equity, debt and foreign- markets (“What are Emerging Markets?”). Cavusgil defines emerging markets as, “high-growth developing countries that represent attractive business opportunities for Western firms” (“Measuring the Potential” 87). The environments pertaining to emerging markets hold a high level of uncertainty and vulnerability. These feelings of uncertainty and vulnerability are primarily caused by economic, political and other factors. For many companies, entering an emerging market can be rewarding, but it comes with certain risks. For this reason, companies that are deciding on whether or not to enter an emerging economy are faced with a daunting task.
The rewards of entering an emerging market can be great. For example, in the last several years, many emerging markets have seen double-digit growth. For many companies based in these countries, the performance of their stocks has been well. The economies in these countries provide an excellent opportunity to realize large profits during a time when mature economies are producing small gains (Francis). Many of these countries favorable demographics and economic growth expectations have made them popular countries in which to invest. Another advantage of emerging markets is that many economists predict a shift toward domestic consumption-led growth as incomes rise and populations migrate from poor rural areas into cities.
1. Introduction Emerging markets also tend to have lower debt burdens than most developed countries. The lower debt burden is largely due to robust growth and spending restraint. The result of this is that many emerging markets have rather balanced balance sheets. Productivity in emerging markets has also loomed behind that of mature economies, providing another advantage. Analysts predict that as infrastructure and technology grow in these markets, they could greatly boost productivity, a major factor in sustainable economic growth.
Although there are many rewards associated with entering an emerging market, there are also some associated risks. One of the risks of investing in an emerging market is currency. It is possible that the exchange rates will move in an unfavorable direction. If this happens and the foreign currency, in which an investment is denominated, declines in value relative to the dollar, it could reduce gains or increase losses.
Political risks are another factor that companies face when entering an emerging market. Political changes could adversely affect investment business operations and returns. Many emerging markets have a history of government instability or have…