The concept of emerging markets came to surface in early 1980 and constituted of only eight countries from the two continents of South America and Asia. The globalization of financial markets has since raised the importance of emerging capital markets. We take a quantitative approach to investigate the performance of emerging markets compared to developed markets. The aim of the study is to conclude if emerging markets offers investment value and if logic in portfolio theory can be used to improve the chance of creating a relatively better performing investment. Included markets in our study are Brazil, Russia, India, China, Colombia, Indonesia, Vietnam, Egypt, Turkey and South Africa. S&P 500 is our benchmark for developed market performance. Sample period is 2002-01-01 to 2011-12-31 and monthly return data, creating 120 data points on each index.   The weighting schemes used for the portfolios are min variance optimization, geographical location and high and low correlation. All investments are scored on performances in correlation to S&P 500, inflation adjusted growth, currency effect, Sharpe ratio, skewness and kurtosis. Rankings are done on the separate categories, on the individual overall ranking on only countries and one overall ranking on all investments. A brief overview of the overall ranking for all investments suggest that medium performing investments are overrepresented (12/20) and the low and high is underrepresented (3/20 and 5/20). Of note is that the min variance portfolio outperforms its components, the geographical portfolios have a wide range and the high correlated portfolio outperforms the low. The country to portfolio ratio over each grade suggests only a small skew of the results. There is no low scoring portfolio but the other two ratios are close to 50/50, suggesting that on average the portfolios create diversification benefits. Furthermore normality of returns seem to be violated and then the concept of volatility as a risk measure is significantly impaired also currency risk can be of high importance, currency effects ranged from -48% to 28.7%. Assuming non-normality seems more accurate than assuming normality; therefore we need to improve on volatility as a tool to measure risk. So one direction for further research we see a need is in the concept of volatility. The initial reason for this research came from small investors’ seemingly intuitive knowledge that emerging markets are a suitable investment option. We have concluded that they in fact are, therefore we suggest that a qualitative study is conducted to investigate this seemingly natural intuition.

Recent spikes in oil prices have thrown light on how economic activity in emerging markets may be impacted by oil price shocks. This paper conducts an empirical analysis of the effect of oil price shocks on emerging markets. It tests for the existence of an asymmetrical relationship between oil prices and economic activity using a model developed by James Hamilton. It also assesses the impact of structural shocks to the real price of oil on output as proposed by Lutz Kilian. While our models find no consistent pattern within emerging markets, they do suggest that oil price shocks have a greater significance in 2000-2009 than in the full sample of 1974-2009. We also find that emerging economies are impacted by changes in oil specific demand but unaffected by changes in aggregate demand for industrial commodities.

The classical approach to strategy defines strategy as a process of planned calculation and analysis to design long-term advantages. The Structure-Conduct-Performance (SCP) model argues that firms perform and develop strategies based on market structures. These approaches have been seen as the “norm” but are today criticised as outdated since they do not fully suit new emerging markets. The aim of the study is to investigate whether these approaches need modifications for emerging markets and if unique factors need to be emphasized when developing sale strategies for the Chinese market.  The empirical findings are based on two Scandinavian firms with long experience in China. A qualitative exploratory research design is conducted trough the study. As a conclusion a guideline of vital factors for the Chinese market is provided: market knowledge, political and social system, relationships and branding. The knowledge of these factors can help other companies to master the complex environment of the Chinese market.

Multinational corporations (MNCs) raised from emerging markets (EM) have drawn enormous attention to the world in recent decades. These internationalization activities have not only signaled characterized features of globalization, but also foreseen the future of strengthened “latecomer” global position emerged from developing countries. However, current studies have shown sufficient lack on research towards motivation behind EM MNCs’ internationalization. Many current theories and models were followed by patterns applied within those more developed countries. Nevertheless, EM MNCs appeared to hold different motivations approaching to internationalization. Thus, this paper documents a series of reasons that triggered EM MNCs to internationalize. In particular, studies carried out from this paper have concluded into a 2x2 Model, which characterized that the EM MNCs’ internationalization motives are incorporated from two perspectives (institutional based and resource based) into two approaches (asset seeking and opportunity seeking). Four case studies of multinationals in technological industry from two emerging markets are included in this paper, in order to attest validity of the 2x2 Model; these multinationals are Lenovo (China), Haier (China), Arçelik (Turkey), and Vestel (Turkey). We believe that technological industry is one of the most significant industries from emerging markets that is intensively involved in international activities; the selected firms have shown devoted global strategies and created certain size of impact in the global market, which is genuinely representative towards our studies.

ABSTRACT Title: How Kalmar Industries and Trelleborg AB developed their business in the emerging markets of China and Russia Background and Purpose: The world is becoming more global and companies are quick to grab hold of this opportunity to internationalize and expand into emerging markets. The emerging markets studied in this paper are China and Russia, which boast growing economics, large sources of labor, and are reportedly highly corrupt. The research for this paper focuses on Kalmar Industries – a leading supplier of cargo handling equipment to ports, terminals, and Trelleborg AB Fluid Systems – an industrial company that sells industrial hose and other industrial rubber components. Both companies have entered the markets of China and Russia and are presently expanding operations there. This paper’s aim is to get a better insight into how they entered these emerging markets and what difficulties they have faced developing in these markets. Method: A survey was sent in advance to potential interviewees working closely with the subject markets. The authors then followed up with interviews, phone interviews, and emailed responses. Theory: Market entry strategies, framework for integrated risk management in international business, international risk perception and mode of entry, two dimensions of corruption, and relationship marketing Findings and Conclusion: Both Kalmar Industries and Trelleborg AB Fluid Systems entered the market through exportation and have gradually increased investments in these markets. Both have experienced challenges in these markets mostly due to government policies and other general risks associated with entering into foreign markets. Although corruption is present in China and Russia, neither company feels that it affects the way they do business. In spite of the risks, both companies feel the benefits outweigh the drawbacks and they plan to continue growing in these markets.

An extensive literature has examined many of the consequences of foreign bank participation in emerging markets. However, research to date has largely focused on the effects of foreign bank participation in domestic banks and yet revealed little about the situation for foreign banks. The thesis, examines Citibank in Turkey as a particular case in order to address this gap. The results show that Citibank

Within the field of Product Design there is an increasing interest in designing with emerging markets. Considering how long people have already been concerned with increasing global living standards it is surprising how little has been achieved. This suggests our current methods are insufficient. The Capability Approach (CA) by Amartya Sen offers a new way of assessing inequality and poverty, focusing on what people have reason to value to be or do. Products can be means to achieve these beings and doings. An evaluation framework inspired by this philosophy was developed. The framework was tested in a case study. The sociological impact was evaluated of the Philips Chulha, a subsidized cooking stove implemented in tribal India. The impact in terms of the CA was identified and explained using Kleine&rsquo / s Choice Framework and Bourdieu&rsquo / s concept of habitus. The framework was successful in engaging into deep dialogues with the target users. The interpreter appeared to be highly influential on the way the study was executed. Since the research was conducted in one region, no firm statements could be made based on this single case study. The framework needs further testing and developing in order to increase the collaboration between the interviewer and the interviewee. Eventually product designers can use the improved evaluation framework as a prospective framework to uncover design opportunities for developmental purposes.

<p>This paper adds to the understanding and transparency of equity pricing in emerging markets. Its novel contribution is that it empirically investigates the pricing of Country Risk in BRIC markets, using a two-factor intertemporal pricing model. Bridging the gap between academics and practitioners, this paper contributes to the debate as to whether or not it is justified to adjust discount rates for emerging market companies – as given by the CAPM – by including an unconditional country risk premium. In choosing between country risk proxies, the sovereign yield spread adjusted for relative equity volatility appears to supersede the classical sovereign yield spread in explaining return variations. Evidence is presented that country risk is priced in India and China indicating some type of market segmentation; in these markets, the addition of a country risk premium to the discount rate is justified. Moreover, the paper complements the market integration literature in that it is shown that the correlation between the change in country risk premium and the equity risk premium might show signs of market segmentation or market integration, rendering the pricing factor for country risk in specific countries significant or insignificant, respectively. © 2010 Soeriowardojo, G.T. All rights reserved.</p>

<p>The final aim of this thesis is to evaluate opportunities and risk factors of investing in China, in terms of pros and cons, and also to elaborate an optimal portfolio strategy. The pros regarding investments in China are (1) the economic liberalisation and reforms of the institutional framework; (2) the Chinese market’s huge potential and the high-growth IT and telecommunications sectors; (3) a favourable macroeconomic climate and an impressive development. The cons are (1) the mismanagement of the state-run companies; (2) the mainland exchanges’ intra-year volatility; (3) the export sector’s performance might decline; (4) the institutional framework is largely responsible for many risk factors; (5) a tougher competition climate after the entry in the WTO. Also, our calculations on an optimal portfolio strategy suggest that less risk-averse investors may want to consider the World/Shanghai portfolio, whereas the World/Shenzhen portfolio might instead suit the preferences of more risk-averse investors.</p>

<p>ABSTRACT</p><p>Title: How Kalmar Industries and Trelleborg AB developed their business in the emerging markets of China and Russia</p><p>Background and Purpose: The world is becoming more global and companies are quick to grab hold of this opportunity to internationalize and expand into emerging markets. The emerging markets studied in this paper are China and Russia, which boast growing economics, large sources of labor, and are reportedly highly corrupt. The research for this paper focuses on Kalmar Industries – a leading supplier of cargo handling equipment to ports, terminals, and Trelleborg AB Fluid Systems – an industrial company that sells industrial hose and other industrial rubber components. Both companies have entered the markets of China and Russia and are presently expanding operations there. This paper’s aim is to get a better insight into how they entered these emerging markets and what difficulties they have faced developing in these markets.</p><p>Method: A survey was sent in advance to potential interviewees working closely with the subject markets. The authors then followed up with interviews, phone interviews, and emailed responses.</p><p>Theory: Market entry strategies, framework for integrated risk management in international business, international risk perception and mode of entry, two dimensions of corruption, and relationship marketing</p><p>Findings and Conclusion: Both Kalmar Industries and Trelleborg AB Fluid Systems entered the market through exportation and have gradually increased investments in these markets. Both have experienced challenges in these markets mostly due to government policies and other general risks associated with entering into foreign markets. Although corruption is present in China and Russia, neither company feels that it affects the way they do business. In spite of the risks, both companies feel the benefits outweigh the drawbacks and they plan to continue growing in these markets.</p>