Investment Opportunities in Emerging Markets
Added on 2020-04-01
22 Pages3870 Words370 Views
Running head: INVESTMENT MANAGEMENTInvestment managementName of the studentName of the universityAuthor note
1INVESTMENT MANAGEMENTExecutive SummaryThis is a study, which will portray the investment opportunities in the emergingmarkets. The countries that have been selected for analyzing the investment opportunities areBrazil, Russia, India and China. These four countries are emerging in nature and is grabbingthe attention of the foreign investors because of the lucrative setup of these marketeconomies. Brazil is one of the largest economies in the continent of Latin America andexporters of energy. The market economy of the country is dependent on the oil and naturalgas market. Similarly, Russia is also dependent on their oil reserves and has faced a lot ofchallenges in making a transition from the economy that is planned to a free market economy.The GDP of the country has progressed immensely and the country is among the largesteconomies in the world. India is one of the largest economies and one of the market leadersof the manufacturing industry. India has made commendable growth in the service sectors asthey provide quality labours at cheap prices. China is the largest member of the BRIC interms of GDP and size. China is one of the fastest growing economies in Asia and the foreigncompanies are making an effort to build relationship with this Chinese government to makean entry in to foreign market. Thus, form the above report it can be concluded that theChinese market is the most suitable market for Australian investors. The three other emergingeconomies are also growing but the economic growth of China is far greater than the othernations. This is the right time to capitalize on the market situation and the investors will haveto make sure that they analyze the market thoroughly before entering the Chinese market.
2INVESTMENT MANAGEMENTTable of ContentsIntroduction................................................................................................................................3Market analysis..........................................................................................................................3Brazil investment opportunities.............................................................................................4Russia investment opportunities............................................................................................8India Investment opportunities.............................................................................................12Investment opportunities in China.......................................................................................15Suitable market.........................................................................................................................17Balanced portfolio....................................................................................................................17Conclusion................................................................................................................................18Reference..................................................................................................................................19
3INVESTMENT MANAGEMENTIntroductionThis is a study, which will portray the investment opportunities in the emergingmarkets. The countries that have been selected for analyzing the investment opportunities areBrazil, Russia, India and China. These four countries are emerging in nature and is grabbingthe attention of the foreign investors because of the lucrative setup of these marketeconomies. Brazil is one of the largest economies in the continent of Latin America andexporters of energy. The market economy of the country is dependent on the oil and naturalgas market (Al‐Mulali, Solarin and Ozturk 2016). Similarly, Russia is also dependent on theiroil reserves and has faced a lot of challenges in making a transition from the economy that isplanned to a free market economy. The GDP of the country has progressed immensely andthe country is among the largest economies in the world (Yang et al. 2017). India is one ofthe largest economies and one of the market leaders of the manufacturing industry. India hasmade commendable growth in the service sectors as they provide quality labours at cheapprices (Negi and Prakash 2016). China is the largest member of the BRIC in terms of GDPand size. China is one of the fastest growing economies in Asia and the foreign companiesare making an effort to build relationship with this Chinese government to make an entry into foreign market (Wang et al. 2016.). The report will consist of analysis of all the emergingcountries, which will help, in identifying the investment opportunities and selecting a suitablemarket for the investors in Australia. Finally, the report will conclude with the developmentof the balanced portfolio for the chosen market.Market analysisThe market analysis will consist of the portfolio investment opportunities in thecountries of Brazil, Russia, India and China.
4INVESTMENT MANAGEMENT
5INVESTMENT MANAGEMENTBrazil investment opportunitiesThis table shows the foreign direct investment of the United States in Brazil and viceversa. This is a Historical Cost Basis analysis, which shows that United States have thehighest number of Foreign direct investment in Brazil.Host Country Statistical SourceUSG or International Statistical SourceUSG or International Source of Data:BEA; IMF; Eurostat; UNCTAD, OtherEconomic DataYearAmountYearAmountHost CountryGrossDomesticProduct(GDP) ($MUSD)2016$1,799,4362015$1,774,700World BankBCBForeign DirectInvestmentHostCountryStatistical sourceUSG or InternationalStatistical SourceUSGorInternationalSource of Data:BEA; IMF;Eurostat;UNCTAD, OtherU.S. FDI inpartnercountry ($MUSD, stockpositions)2014$111,714*2015$65,272**BEA dataU.S. is Historical-Cost BasisHost country’sFDI in theUnited States($M USD,stockpositions)2015$9,606*2015$23,660**BEA data
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