Describe A Study That You Have Recently Read Or Heard About
The emerging global market is the latest topic on every economic based program. This is because it has been proved to be a great place to invest. This was an observation study that confirmed that indeed markets outside the North America yield more profits in the long run than markets that are within the continent. This is because there more untapped opportunities in developing countries like India, Brazil and China (Gregory, p2).
The conclusion that was made from the study was that US investors should not put high financial hurdles while investing in these developing countries out of fear of risking too much. This is because this action denies them numerous opportunities to serve the big and thirsty market that is offered by the populations in these countries. The main data that backs up this conclusion is first most industries in North America grow by 2-4% annually, while the emerging markets grow by 12-15% annually, this means there is room for expansion. Competition is also very high in USA, meaning the firms have to embrace cut throat strategies to outdo each other, this takes up 17-24% of their total budget, and this is a non-existent factor in the emerging global market (Gregory, p4).
The study was able to avoid biasness by taking a look at different markets using the same exact criteria. This was well expressed by the use of Dominos as a firm that was started in the USA, around ten years ago it franchised in developing countries and become a multinational organization. Currently 80% of all its total revenue comes from the emerging markets in developing countries. This means that the same criterion that was used to grade the market that is served in USA by Dominos was used to grade the market served by Dominos all over the world. Work cited
Gregory V. Milano and Jeffrey L. Routh – CFO.com, Emerging Global Markets | US February 15, 2012