In today’s changing global economy, it’s eat or be eaten. The stalwart mega-cap corporations and emerging market exchange traded funds (ETFs) should pay attention: developing market companies are moving steadily up the food chain.
There’s a growing throng of hungry, cash-rich and dynamic companies bursting out of the emerging markets and onto the world stage, says Amy E. Buttell for NASDAQ. The more emerging markets develop, the more of a threat the companies based there are becoming a threat. [Harvard Endowment’s ETF Holdings.]
This means a major shift in world trade. Some analysts predict that developing countries will account for two-thirds of world trade soon; they account for one-third right now. [Financial ETFs: Why Emerging Markets Are On Top.]
Emerging market corporations aren’t the only powerful entities; their consumers are powerhouses, too. Case in point: JapanToday reports that Toshiba President Norio Sasaki says that the electronics giant’s operating profit is expected to rise, with emerging markets the prime consumer. As part of its medium-term business plan, Toshiba will also aim to raise its overseas sales ratio to 63% in fiscal 2012 from 55% in fiscal 2009. A 31% increase is expected to grow for the company with overseas markets in mind.