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IBS.pptx

  1. 1. Institutional Voids in Emerging International Markets Presented by : Shamim Shakil (19202022) Kaniz Fatema (19202024) Hazera Rahman Jumu (19202025) Imtiaj Ahmed (19202029) Atiqur Rahman Arman (192022030)
  2. 2. Emerging Markets an emerging market economy is the economy of a developing nation that is becoming more engaged with global markets as it’s growing. Characteristics of emerging markets • Strong economic growth • High per capita income • Liquid equity and debt market • Accessibility by foreign investors 2
  3. 3. Institutions Institutions are the range of specialised intermediaries which provide the needed information and contract enforcement needed to document transactions. Institutional Void the absence or underdevelopment of specialised intermediaries such as database vendors, and quality certification firms, regulatory corporations, and control-enforcing mechanisms (Khanna & Palepu, 2010)'.
  4. 4. Different institutions in emerging markets According to Khanna et al.,2015 • Product Market • Labour Market • Capital Market • Political and Social System • Openness
  5. 5. Product Market • The availability of information- it is one of the major problems in emerging market. This problem does not exist in developed economies. • Logistics and infrastructure- the ports and roads of emerging economies are not as secure as the developed economies.
  6. 6. Labour Market • Availability of skilled Labour - emerging markets have less skilled human resource compared to the developed markets. They also lose their skilled Labour to the developed countries as they tend to migrate for better opportunities.
  7. 7. Capital Market One of the main issues with the capital markets in emerging economies is the lack of the information availability to the capital providers.
  8. 8. Political and Social System • Interference in business by local government- the government might take protectionist measures by implementing tariffs and quotes • Political Instability - it puts negetqive impact on the productivity, quality and relationships.
  9. 9. Openness It refers to the attitudes of people towards the foreign investors and their investments. They could either be welcoming and friendly or be rude and strict.
  10. 10. Conclusion
  11. 11. Thank You

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