The paper "Distinction between Developed and Emerging Markets" is a good example of marketing coursework. Over the past few decades, the world is seemingly undergoing economic segregation into two strong entities of the developed and developing market. It may seem uneasy for both entities to reach the state of equilibrium, but the fact remains that the measure of correlations between the markets is increasingly closing the gap through the equality state is yet to be achieved. Though the process of integration between the emerging and the developed markets is not complete, the emerging markets are posing threats to the developed markets.
The myth has changed from the question of whether to invest in the emerging markets into the issue of how much to invest in the emerging market. In fact, the emerging countries are experiencing undisputed faster economic growth with respect to the transition market phase to a market economy. The difference between the two markets is weighed by the ability to provide investors with opportunities to realize higher profits. While the developed market is struggling on how to adapt to the contemporary world with technological advancement, the emerging markets experience the risk profile. The distinction between Developed and Emerging Markets The developed markets are the countries that enjoyed highly competitive industries and well-developed infrastructure.
The countries contributed to the growth of world economies due to the high per-capita income. However, the emerging markets had achieved substantial industrial development and modernization after the imperialism period. The emerging economies are characterized by rapid economic growth, increasingly challenging the developed markets. The markets can be compared along the line of the level of the contribution to the world economies and the registered GDP over the decades and the current trade.
It is interesting to mention that the markets wide gap in the last few decades has been breached almost to the closure due to the adoption of various strategies by both the governments and the private institutions in the emerging countries. In the 1980s, the emerging market, for instance, China recorded less than 1.5% of the world GDP while developed markets such as the U. S and Japan accounted for 46.3% of the world. It is worth mentioning that the emerging countries faced the challenge of the market capitalization thereby making it difficult for the development of equity in the competition.
However, given the drastic development of the technologies and the sense of globalization dawning to the emerging nations provided platforms for the growth of economies both locally and internationally. In addition, the emerging economies deployed changes in the strategies such as the incorporation of the deregulation and privatization of the factors for production leading to viable investors venturing into the business. The disparity between the two entities in the world of world economies reduced with the emerging economies accounting for 15% GDP in 1987 yet the gap of capitalization was large with 1% of the world being capitalized.
The development and growth of the emerging market can be attributed to the dynamic changes around the globe, for instance, the evolution leads to the emerging of countries such as Singapore, Israel and South Korea beyond emerging markets.
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