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Emerging Markets

By:   •  October 12, 2012  •  Essay  •  438 Words (2 Pages)  •  894 Views

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Describe the importance and role of emerging markets for international business. Indentify three emerging markets (countries not mentioned in this case study) that Toyota could enter and motivate its viability for Toyota:

Emerging markets are important for international business because their markets are in transition and hence not stable, they offer an opportunity to investors who are looking to add some risk to their portfolios. However the bigger risk, the bigger the reward, so emerging market investment have become a standard of practice among investors aiming to diversify while adding risk.

Toyota as an organization conducts its business worldwide with so many overseas manufacturing companies in 26 countries and regions. Toyota's vehicles are sold in more than 170 countries and regions. Toyota aims at localizing and collaborates with automobile companies in foreign countries in order to be the leader in the automobile market. The map below reveals countries where Toyota is actively operating:

The following emerging markets are the countries where Toyota could enter and start doing business:

ANGOLA:

1. It's an emerging market with smaller growing economies.

2. The outlook is good and growth is expected to be increased by high oil process and by the resumption of the government's Public Investment Program.

3. Angola has considerably diversified its economic partners and in terms of imports the role of emerging partners has also expanded.

4. With budgeting and current account balances beginning to recover on the back of rising oil process, monetary policies are expected to loosen to foster private sector activities.

5. Although there are risk from political or economic instabilities, Toyota can consider Angola as a niche opportunity market.

EGYPT:

1. The pace of structural reforms, including fiscal, monetary policies, privatization

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