Introduction to Emerging Markets
This one-day course covers how U.S. companies, equity funds and commercial lenders should evaluate potential investment opportunities in the emerging markets of Asia, Latin America, Eastern Europe and Africa. These markets have many differences, but there are business patterns that cross borders and continents, providing a template that can be applied on a global basis.
Executives from U.S. companies operating company equities funds and commercial lenders who are considering an entry into the emerging markets.
Students will be able to:
- Identify emerging markets
- Describe their typical business, social and political climate
- Point out the principal opportunities and pitfalls for the U.S. corporate concern
- Define risks, consider steps to limit them, and set appropriate rates of return on investments
- Analyze key aspects of emerging market public stocks values from an equity portfolio manager's perspective, as well as an M&A
- Know the important risks faced by the U.S. dollar denominated lender to an emerging markets company, and how the lender can lessen the risks
What is an Emerging Market?
- Business Climate
- Political and Social Framework
- Currency and Capital Markets
What Attracts Multinationals to Emerging Markets?
- Growth: Realty & Myth
- Profits: Reality & Myth
- Tactics for the operating firm to enter at a reasonable cost
Reasons for U.S. firms to Avoid Emerging Markets
- Access issues
- Normal business risks, plus specific local risks
- How to limit the risk
- How to set the appropriate IRR
Portfolio Investment Considerations
- Why are U.S. investment funds interested?
- Practical problems with rational analysis of equities
- Solving the problems
- Stock selection guidelines
- Case Study
Commercial Lending in Emerging Markets
- Emerging markets and foreign lenders
- Extended credit analysis
- Mitigate currency and political risk
- Ten credit guidelines
CPE Credits 7
No advance preparation required.
This course has no prerequisites.