Emerging Markets: Look Before You Leap

Think "emerging markets," and most people think BRICs. The problem with this approach is that it is too simplistic and tends to treat emerging markets as one homogeneous whole, when the exact opposite is true. Instead of asking, "What's my emerging market strategy for Brazil, Russia, India or China?" companies should ask themselves, "In which ways is this particular market emerging?" Viewed this way, the answer may surprise them. The authors synthesize a decade of their research to clear up the confusion that abounds as to whether a market is or isn't emerging. They first explain which institutional mechanisms need to be in place for the healthy functioning of any market, so managers will be able to recognize when these vital mechanisms are absent or deficient. Asking a series of key questions will help managers spot voids, making them better equipped not only to tackle the challenges but to leverage emerging opportunities in all their guises -- whether in the countries that attract the most attention, or in the United States and Western Europe, which may still be "emerging" in some ways.