Emerging Market Firms Investing in Each Other's Home Essay

Emerging Market Firms Investing in Each Other's Home - Essay Example This paper illustrates that maintaining circulation of finances among countries with emerging markets becomes more beneficial to the countries that these locked out from the game. These emerging markets come about as a result of an increase in population and advent of technology, an attempt to pull up the economy by developing nations call for resources. These need for resource create the emerging markets. Developing countries with emerging markets firms tend to invest in each other home with the reason of being cautious about the situation of the local economy in the prescience of foreign firms from the developed world. Sauvant argues that developed nations make efforts towards attracting developing nations into signing business deals. Developing nations with emerging markets are always wary of multinational companies which may pose a risk of extinction to the local firms. More benefits may be realized when emerging markets are exploited by countries with the similar situation so as to have positive development at a relatively similar pace. Development of multinational enterprises will tend to follow the same procedure of having emerging markets as a preference. Most investors would prefer to make multinational deals with nations that have the potential of emerging markets. Operating at the relatively same level of financial ability becomes the driving force. The establishment of enterprises in other countries will follow the emergence of markets for the products which would come from either side. Prospects of emerging fields becoming the new battleground may be realized. For this reason, the impact is always felt on trading partners regionally and in countries which are distantly positioned. For this reason, there has been a record of an increasing number of countries receiving a pull into the economic orbit. According to Kathleen, emerging markets and its leaders sought to create second tiers with a massive flow of investment realizations. Scramble for resou rces creates more pressure hence expectations are made on the first mover longer steps over the emerging heroes. The competition will be realized among emerging markets in regions such as the Middle East and Africa through their government.