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  • Category: Government

    What is the difference between advanced markets and emerging markets?


    Do you want to know about the difference between advanced markets and emerging markets? Please check in this page to see what our experts say about it.

    If we see world GDP rankings, India comes at 7th place in nominal terms and similarly India's rank, in Purchasing Power Parity (PPP) terms, is 3rd in the world. But India is termed as emerging or developing economy. Many other smaller countries, which have smaller GDP when compared to India, are termed as advanced economies. On what basis, a country is called developed economy? What is the difference between advanced markets and emerging markets?
  • #146742
    The Developed markets are probably the easiest to identify. These countries are usually the most advanced economies.They have highly developed capital markets with high levels of liquidity. A better controlling regulatory body, market capitalization, and high per capita income. Developed markets are found mostly in North America, Western Europe, and Australasia, including nations like the U.S., Canada, Germany, the U.K., Australia, New Zealand and Japan.
    Defining emerging markets is a little tricky. An emerging market is a country in the process of rapid growth and development with lower per capita incomes and less mature capital markets than developed countries. It includes Brazil, Russia, India, and China; and also the Portugal, Ireland, Italy, Greece, Spain.

    drrao
    always confident

  • #146747
    Developed markets or advanced markets basically refers to the countries which are well developed in terms of their economy, consumption pattern and high per capita income. Many American and European countries as well as Australia come under this category.
    Emerging markets is a term for those countries where consumption pattern is increasing along with income and the country is going through a transition from poor economy to developing economy.
    Countries like India come in this category.
    For companies manufacturing consumable items the emerging markets are the best target as the developed countries are already saturated in terms of sale of goods and consumables.
    So global companies in their marketing strategy focus more on such countries.

    Thoughts exchanged is knowledge gained.

  • #146753
    Emerging markets are not on par with developed economies or countries but are progressing towards the advanced market. Here returns on investments are higher but come with a risk due to volatility, infrastructure issues, and political instability. It lacks stringent accounting standards and securities regulation but has a common currency and banking infrastructure (Brazil, China, India).

    In an advanced economy, the return on investment is not as high as emerging economies but have a high level of industrial development, high standards of accounting, a higher degree of market efficiency and tighter securities regulation (USA, Europe, Japan).


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