Differences Between Developed & Emerging Markets:
- Developed markets have very stable institutions (companies and governments).
- This gives investors the confidence to invest in those countries even during bad times
- Emerging markets tend to have more fluid institutions that makes it risker to invest for the long-term
Concerns About Investing in Emerging Markets (Circa 2018)
- government corruption
- poorly education population
- over-crowded urban slums
- pollution
- economy is dependent on commodities and natural resources
How Are Living Standards Raises?
- Urbanization increases living standards in emerging markets
- Countries with low but accelerating rates of urbanization can make good investments
- Countries with young education populations set a good base for economic gains