Memahami Pasar-Pasar Emerging (Understanding Markets)

Abstract

The purpose of this study is try to answer “what makes emerging markets attrative for International business; estimating the true potential of emerging markets; the risk and challenges of doing business in emerging markets and strategies for doing business in emerging markets. Emerging markets represent promising export markets for products and services. They are ideal bases for locating manufacturing activities. Low labor costs have made emerging markets major suppliers of a variety of manufactured produst to the rest of the world. Special consid-erations must be taken into account to estimate the true demand in emerging markets. Managers can follow one of three approaches: rely upon per-capita income, considered the size and growth rate of the middle class, and build a more comprehensive set of indicators such as Emerging Market Potentail Index. Emerging market pose various risks. Political instability, inadequate legal and institutional frameworks, lack of transparency, and in-adequate intellectual property protection that add to the cost of doing business. Firms aspiring to do business in emerging markets need to adapt strategies and tactics to suit unique conditions. Governments are often mayor buyers in emerging markets. Firms from advanced economies follow various approaches to skillfully challenge emerging market competitors.Keywords: Competitive Challenges and Emerging Markets