During the near decade that Heather Rome spent working with Development Alternatives Inc. (DAI) she became more proficient in her interactions with emerging market countries. An emerging market is a country that has begun to offer investment and trade opportunities, but is still generally considered underdeveloped in comparison to other regions of the world. Investing in an emerging market can be a risk, however, that risk also offers the possibility of a big reward.
- The population of an emerging market plays a large role in determining the risk to reward ratio of investment. Currently, the top two emerging markets are India and China. Both countries are heavily populated. Nearly ninety percent of the world’s total population lives in an emerging market.
- Investment in an emerging market is a door that swings both ways. A smart investor will look for opportunities to provide a consumable product to these markets, meeting a need or filling a demand that is yet untapped. The people living in emerging markets have the potential to become consumers of the new product, and those consumers will drive demand in looking for new products and services that an investor or global company may be able to provide.
- For China and India, their position as an emerging market is due in part to the industrial revolutions that have been taking place over the last century. As the countries continue to grow, so may the number of residents with increased buying power for new consumer demands. Former DAI professional Heather Rome DAI enjoys working with emerging markets and countries that are growing.