Emerging Markets

Question 1

Institutional Voids

Answer 1

Institutional Voids are defined as the absence of market intermediaries & Institutions, to bring buyers and sellers together

Question 2

Strategic Responses to institutional Voids

Answer 2

Circumvent/product adaption
Internalize, filling voids internally
developing the needed institutions in the host country

Question 3

Typical Features of Emerging Markets

Answer 3

-low per capita real income
-high population growth rate/size
-high rates of unemployment
-high Poverty rates

Question 4

Market intermediaries

Answer 4

-credibility enhancers
-information analyzers & advisors
-aggregators & distributors
-transaction facilitators
-adjudicators
-regulators & other public institutions

Question 5

Why are Emerging Markets for International Firms attractive?

Answer 5

-85% of the world population live in BRIC countries
-relevancy in the global economy is on the rise

Question 6

Market Entry Emerging Markets

Answer 6

Institutions need to be considered more.