Emerging market

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Emerging Market

An economy in a country noted for growing liquidity, stability, infrastructure and other positive features, though not to the same extent as exists in the developed world. That is, emerging markets are economies that have increasingly important roles in the international stage and may one day become principal players, but they have not yet arrived at that level. Political factors may help or encumber emerging markets as they attempt to gain wealth and prominence. Major examples of emerging markets are Brazil, Russia, India, and China. Smaller economies, such as Bahrain, Egypt, Colombia, and others are also considered emerging markets. Emerging markets exist in less developed countries relative to the United States and Europe; these countries nonetheless have vibrant, active economies. See also: International development, BRIC.

Emerging market.

Countries in the process of building market-based economies are broadly referred to as emerging markets. However, there are major differences among the countries included in this category.

Some emerging-market countries, including Russia, have only recently relaxed restrictions on a free-market economy. Others, including Indonesia, have opened their markets more widely to overseas investors, and still others, including Mexico, are expanding industrial production.

Their combined stock market capitalization is less than 3% of the worldwide total.

References in periodicals archive ?
In general, the already-higher capitalisation and greater reliance on deposits should support emerging market economy banks' transition to Basel III.
While some jurisdictions have voiced concern about their limited supply of government securities, which is a major component of high- quality liquid assets in satisfaction of the liquidity coverage ratio, many emerging market economy banks have an even higher share of government securities on their balance sheet than do their advanced economy bank peers, including banks from Saudi Arabia.
An investor has to evaluate both the prospects of the capital flows and the ability of the country to make necessary adjustments in the external accounts (in an emerging market economy case) and in the public accounts (in both emerging market economy and Eurozone cases).
In assessing whether an emerging market economy might be "converging," one usually looks at a number of standard yardsticks.

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