REVISITING THE INVESTMENT POTENTIALS IN EMERGING MARKET ECONOMIES (EMEs): THE CASE OF STAR TRUCKS INTERNATIONAL LTD.

Author's Name: Dr. Van Dalluay, Dr. Carl Mark Miniano & Dr. Revenio Jalagat, Jr.
Subject Area: Social Science and Humanities
Subject Business Management
Section Research Paper

Keyword:

BRICs, emerging market economies (EMEs), investment potentials, key indicators, Star Trucks, Inc.


Abstract

This paper primarily examines the investment potentials in the emerging market economies (EMEs) as the point of consideration for business expansion of the chosen organization, Star Trucks International Ltd. Specifically, it established key indicators in comparing the business environment surrounding the emerging market economies including the BRICs (Brazil, Russia, India and China) countries. These indicators include but not limited to labor productivity measured in value added per worker, labor quality, measure of capital and total factor productivity and employment. Moreover; it tackles the topics on investment environment, market and labor productivity potentials, government intervention on policies, impacts of regional integration initiatives and assessing the opportunities and threats of the BRICs countries. Secondary data were used for analysis and comparison among the EMEs. Key results showed that the indicators used provided varying outcomes. However; further evaluation revealed that countries such as China, India and Indonesia are better choices for Start Trucks International Ltd. to invest because of favorable fixed capital formation, increasing participation of working population, and the opportunities to capitalize in these markets. Furthermore; in terms of real GDP growth rate, these three countries also demonstrated its dominance with China the highest, followed by Indonesia and India although significant drop of the rate on China and India in 2011-2013. Based on these findings, it can be recommended that preference on investment potentials will be emphasized in these countries although further studies are needed to affirm these results.

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