Finding New Opportunities in Foreign and Emerging Markets  

Investing beyond borders is a common strategy. In both emerging markets and foreign markets, investors seek out opportunities for profitable investments such as:

• New alternative products, inventions, and ideas; 
• Commodities or industries that perform well, comparing to those domestically; and
• Political, economic, social, or technological changes that may spur distinguishable growth within various sectors.

The Risk and Reward of Emerging Markets

An emerging market is an economy that is developing in response to the spread of capitalism and has created its own stock market. Similar to small growth companies, emerging markets have high potential as well as high risk. For example, Pacific Rim markets grew rapidly for a time, and then collapsed in 1997 and 1998. Recently, Brazil has attracted many foreign investments because the country has an abundant natural resource: oil.

Continue reading about Industry Basics: Globalization of World Markets.