My primary task was to create a research about " the rise of the Emerging Markets and the impact on global markets. "
please criticize my work below. Thank you
The Rise of Emerging Markets
Emerging markets, but what could be the impact to the global market?
An emerging market is defined as an economy with low to middle per capita income. Such countries constitute approximately 80% of the global population, and represent about 20% of the world’s economies (Heakal, 2015). These economies are progressing toward becoming advanced. It is on a transitional stage which it is in the process of moving from closed to opened market economy while building accountability in the system.
Over a decade ago, on the years of early market development, as the investors sees investment opportunities in the emerging markets due to the slow growth in developed markets, market players tried to gain the benefit of being a first mover. These market participants would like to harvest first the opportunities for having economic advantages such as low labor costs, the concentration of affluent populations, pent-up buyer demand, lack of marketing sophistication, and low levels of advertising.
While international trade and foreign direct investment have been growing rapidly for the recent decade, this growth is being noticed and it indicates that it has been able to build confidence in local economy. Moreover, foreign investment is a signal that the world has begun to take notice of the emerging market. These continuous foreign translation and receipts of capital creates a global value chain. These chains are being showed by the developed and emerging market relationship. For developed markets investors, emerging markets provides an outlet for expansion by serving as a new place for a new factory or for new sources of revenue. In the Philippines setting, this is being injected to its economy by establishing service centers or outsourcing of tasks in order to create business diversification and lower labor cost. For the recipient country, employment levels rise, labor and managerial skills become more refined, and a sharing and transfer of technology occurs.
As emerging markets rise, it provides opportunities to global investors which provides a market chain effect and efficient flows of capital as it moves from those who has a surplus into those markets or economies that has a deficit, and results to market efficiency.
As I haven’t written any real research reports myself I don’t know of what use my critique will be. But there seems to be no substance here, it is all fluff. Why dont you back some of this up with some analysis of numbers, identify some trends and suggest an investment strategy that will best capture the current & prejected market trends.
Right. It sounds like you’ve figured out the words that researchers use, but you haven’t figured out that research is used to answer some relevant question.
The most interesting research starts with some kind of question that most people think they already know the answer to and points out that the conventional wisdom gets it wrong. So you should start with a single point of “conventional wisdom” and then look at the data to see if it’s true. Something like “is the distinction between emerging and developed markets a relevant distinction anymore?”
While it is legitimate to conclude that the conventional wisdom is true, it generally makes for a boring read. People don’t like to read something lengthy that confirms what they think they already know (though they don’t mind reading something short).
Another interesting research takes conventional thinking and then asks something that is relevant but most people haven’t stopped to ask. Something along the lines of “is GDP per capita the best indicator of stage of development.” (Actually that one is asked a lot, but I couldn’t be bothered to come up with something truly innovative here).
Research is not just barfing up a bunch of facts and figures. It’s about making an argument. Even equity research is about making an argument about what the valuation is.
it is an economic research, didn’t I answered my question on the first line as “what would be the effect of emerging markets on global markets”
which has been concluded that
“as these developing markets rise, it will provide positive benefits to both developed markets and emerging markets by having new investment opportunities for Developed markets and these rising markets will benefit thru the capital flows that will come in to their economy which will rise the employment rate.”
I guess the idea of “what will be the impact of emerging markets on global markets” would have been an interesting topic 40 years ago. I think people didn’t catch that as your research question because it’s taken for granted that emerging markets are a relevant part of the investment universe and have impacts on global capital flows. There’s no news there. If you had some idea of how that impact is different now than it was in the past, then that would be something that could be interesting.
It’s like publishing a piece going “what will be the impact of the internet on business.” The internet has been having an impact on business for well over a generation and spawned countless research projects on it. You can get somewhere by asking “what is the impact on logistics” or “is the internet still changing business anymore” or “how is the impact changing in 2016”. But if you are going to ask “what is the impact,” you’re just going to sound like someone so late to the party that their opinion is not likely to be very useful.
Another approach could be to say “what HAS BEEN the impact of emerging markets (over period X).” This frames it more as a retrospective analysis, and it can be useful in order to contrast the way things are with the way things were before. Not everyone will be interested in a retrospective analysis, but at least it won’t sound like you don’t realize that emerging markets aren’t a new thing.
Many emerging economies have been receiving large investments from China. As these economies grow, and become integrated into global markets, the global use of the Yuan will proportionately rise versus the US dollar. The impact of a gradual shift away from the US dollar as the reserve currency will be more impactful than any EM industrial growth. Trade relations between China and the US will be stressed, tensions will rise, and we’ll see World War III. Therefore, I am shorting the global economy.
Just make it up as you go. Seems more interesting than “EM markets are good. Durr.”
except all of that happened already over the past two decades and now emerging markets are falling apart while capital flows out. So you really just described a past event.