An Emerging Market Country - Russia

As an Emerging Markets, low labor costs and abundant natural resources are the generally characteristics. So how to keep and use those advantages to enhance competitiveness is the first thing Emerging Market countries need to be considered. And for the long-term sustainable development, those countries also need to use accessed production technology to improve revenue and increase spending power.

Russia, as an Emerging Market country, has already completed from an agricultural economy to an industrial economy, which achieved industrialization and modernization, compared with developing countries. So the Emerging Market country becomes to important engine of global economic growth, and it also has huge commodity supplier and sales markets. Especially to USA, the import of cheap goods is not only to meet its consumption needs, and also influenced in inhibiting the inflation.

But when it compared with USA, there are some issues: unsound economic system, huge liquidity, and cultural differences. All those can be integrated for one word: uncertainty. There are so many uncertainty things since it is new market with less information. So the top priority of the company, which wants to invest in Russia, is to gather as much information of this area as they can. No matter what kind information, such as government policy, related products, or residents’ habits, all those things will help investors make better decisions.

In my opinion, since one of strengths of an Emerging Market country is low impact of global economy. The more Russia becomes involved in globalization, the more issues will influence local and transnational companies. So this dilemma cannot be ignored for the investors. Because the uncertainty is not only contribute success, but also cause failure. “Not lose money” is rule number one of any business.      

The first is shortage of information. Since regulatory authorities have not enough supervision on disclosure information for listed companies, macro data in some countries, capital market data, and industry data is also questionable. For securities analysts, the less information means more “guesswork”.