Emerging Market Essay

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An emerging market is a market that is a developing market but is not yet deveveloped, thus has few characteristics of a developed market but is missing those such as the level of market efficiency and strict accounting and securities regulations when compared with developed economies. Emerging markets will typically have a financial infrastructure including banks, a stock market and a currency. The economy could be a future developed market or a developed market in the past. The term “emerging market” was first coined in 1981 by Antoine Van Agtmael who was an economist who worked at the world bank. Around ten years ago the term ‘BRIC countries’ was first heard, the acronym stands for the names of some of the fastest and biggest emerging ecconmies. Later the acronym grew to BRICS standing for Brazil, Russia, India, China and the new member South Africa. More recently the acronym CIVETS has been introduced. Columbia, indonesia, vietnam, egypt, turkey and South Africa are the countries included into this more recent acronym. CIVETS are emerging ecconomies, similar to BRICS, that have a diverse and dynamic ecconomy paired with a young growing population. India and china are the best two examples of emerging markets; they are large markets that are not quite developed yet. They have the benefits of relaxed regulations with intermediate risk factors for investors. We are constantly hearing about the world’s economic super power in the news but more and more frequently we are beginning to hear terms such as BRICS and CIVETS and headlines concerning emerging markets. This is because every year emerging market are becoming more and more influential in today’s economic scene but why? What is causing this increasing importance in emerging... ... middle of paper ... ...ca, that can poduce the supply that will satisfy the demand. This will increase africa’s dependance on south africa and increase south africa’s political and economic influence on Africa. South africa should focus on investment with africa rather than with the BRICS and/or CIVETS as the position of ecconomic leader of the dark contient will help develop our nation faster. The BRICS and CIVETS do have their benefits but they are using South Africa’s inclusion into the respective acronyms to try gain acess to africa. We could benefit africa and ourselves better if we restricted the BRICS and CIVETS investment that could be harmful or particularly resource draining to africa and only allow BRICS and CIVETS investments that would not exploit it’s people and resources, investments such as manufacturing projects. We need to have Africa’s development as our top priority.

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