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Emerging Markets, the Markets of the Future

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The China-Latin America Axis

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Abstract

The emerging China-Latin America-Caribbean regional axis is studied in the context of the emerging markets generally, with their impressively growing share of international trade and investment. What are emerging markets and how did they begin? The authors touch on the emerging nations’ ongoing efforts to translate their economic weight into proportional political influence; survey their dimensions in terms of trade and investment; then address the special characteristics of markets still emerging. These exhibit conditions like severe institutional voids that are considered challenging to commercial operations, causing failures of information, regulation, and commercial justice. But this environment shapes business organisations into competitors with exceptional abilities outside their home markets. The loci of this success amid failure are the megacities that have sprung up in the leading emerging nations.

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Notes

  1. 1.

    President Xi Jinping speaking at Davos in January 2017 (Bruce-Lockhart, 2017).

  2. 2.

    The categorisation is based on four criteria: market and regulatory environment, custody and settlement, the dealing landscape, derivatives.

  3. 3.

    “The FTSE All-World Index is a market-capitalisation weighted index representing the performance of the large and mid cap stocks from the FTSE Global Equity Index Series and covers 90%–95% of the investable market capitalisation. The index covers Developed and Emerging markets and is suitable as the basis for investment products, such as funds, derivatives, and exchange-traded funds. FTSE Emerging Markets indices are part of the FTSE Global Equity Index Series (GEIS). The series includes large and mid cap securities from advanced and secondary emerging markets, classified in accordance with FTSE's transparent Country Classification Review Process. The FTSE Emerging Index provides investors with a comprehensive means of measuring the performance of the most liquid companies in the emerging markets. The FTSE Developed Index is a market-capitalization weighted index representing the performance of large and mid cap companies in Developed markets. The index is derived from the FTSE Global Equity Index Series (GEIS), which covers 98% of the world’s investable market capitalization” (Russell, 2017).

  4. 4.

    Hong Kong, China; Malaysia; Republic of Korea; Singapore; Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu (Taipei, Chinese), and Thailand (WTO, 2006).

  5. 5.

    All Latin American countries were colonised by Spain, speak Spanish, and are Roman Catholic , with the exception of Brazil which was colonised by Portugal and speaks Portuguese.

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Authors and Affiliations

  1. University of Bristol, Bristol, UK

    Gaston Fornes

  2. ESIC Business & Marketing School, Madrid, Spain

    Gaston Fornes

  3. London School of Economics, London, UK

    Alvaro Mendez

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  1. Gaston Fornes
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  2. Alvaro Mendez
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Fornes, G., Mendez, A. (2018). Emerging Markets, the Markets of the Future. In: The China-Latin America Axis. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-319-66721-8_2

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