Emerging Markets vs USA

The emerging markets are important to U.S. because collectively they are now major source of growth for the world economy and of stimulus and economy and financial opportunity for the U.S. economy, investors and business. We studied in all the 11 countries the effect of U.S. on it. As per our studies we come to know that US has some role playing in every country. U.S. plays game with every country and tries to dominate their presence.

If we see the emerging market individual can also have some effect on the market. Mexican external financial crisis in 1994-1995 which disrupt the international financial system also U.S. had an adverse effect because of this. Chinas limit to their currencies can also impact many sectors of U.S. Many observers say that individual emerging market can in future be the competitor of U.S.

Now let us come to the political front of U.S. with this emerging market. It has for the most part dealt with individual Emerging nation in isolation. For example nuclear deal with India, trade openness with Brazil and human right policy with china. When we studied china we came to know how plays a major role in china they are adopting the same rule they used in Russia. But china has got one benefit they have invested their money worth in U.S. bonds. As discussed earlier U.S. competitors will be these emerging nations. If we see how U.S. is worried about Chinas military development this means china has already stepped in the competition.

One demerit is that if there is any crises in U.S. this country also get affected a lot if we see the 2008 crisis. It affected most of the emerging nations market. The main reason is the percentage of foreign investment by U.S. based companies is more than that of the other country companies. Other major issue is U.S. as the major trading partner of most of the emerging nation.

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written by Ankit Jain (ankitjain.pgdm14c@greatlakes.edu.in)