Morrison Handley-Schachler and Maktoba Omar, Edinburgh Napier University, UK
Abstract: Emerging markets present an opportunity for businesses in the increasingly important service sector, to expand their operations and to manage economic risk by diversifying away from post-industrial countries which may experience very similar economic cycles. On the other hand, emerging markets carry many significant risks, including the risk of economic or political crises and hostile actions by governments. This paper investigates issues related to international companies from a post-industrial world seeking greater involvement in emerging markets. Firms need to take care when operating in emerging markets as they can deliver sudden and dramatic economic shocks but also to produce disappointing financial results due to inflation and currency movements. Firms should see an expansion into these markets as a means of genuine diversification of their industrial base, rather than as a easy substitute for continued engagement in regions where they have a longer-standing presence.
Keywords: Post industrial world; emerging markets; SWOT Analysis; politics; culture and finance.
