Do Businesses Operating in Emerging Markets Need To Adopt Different Strategies From Those Operating in More Developed Markets?

The terminology “emerging markets” denotes to the economy that are evolving through a transition from developing to developed states. The characteristics and features of emerging markets were first introduced by the World Bank financier Antoine W. Van Aftmael in 1981. Businesses or multinational enterprises (MNE’s) operating in emerging markets and doing business in emerging markets has many crucial attributes which are not common in developed markets. Now among all the multinationals operating in the world one third are originated from emerging market economy and growing business opportunities with integration of global value chains are one of the main attractions why businesses are moving towards emerging markets. Commonly countries like China, India, Brazil, Russia, South Africa, Chile, Mexico, Turkey, South Korea, Egypt, Indonesia, Thailand, UAE, Saudi Arabia, Vietnam, Pakistan, Bangladesh, Nigeria and Philippines alongside many other central-east European countries are considered emerging markets due to different reasons as all these countries economy is moving towards constant growth. The increasing importance of businesses operating in emerging markets is because of the growing volume of trade and investment activities visible in these economies. Multinational enterprises operate in different conditions with various ways backed by concepts or theories. The developed markets are stable and policy aspects are considered favorable for doing business but emerging markets shows policy uncertainty with unpredictable business environment (Aharoni 2015)