The countries of Brazil, Russia, India, Mexico and China are leaders among the emerging markets. With major industries such as tourism for Brazil, Russia’s wealth of natural resources, the emphasis on technology and marketing in India, Mexico’s tourism and service industries and China expected to rank first in the world for 2011 in industrial output, the impact of these emerging markets on the world economy is of major import.
There are several caveats, however, when dealing with emerging markets.
- Methods of conducting business in foreign markets, particularly those in emerging or frontier status, are radically different from those used in other markets.
- Cash talks: no matter how tempting the deal, unless there is a history of a business relationship, initial transactions should require cash payment up front before merchandise is delivered.
- Zeal must be tempered with common sense: lack of prudence can jeopardise or lose substantial sums of money, and in some cases, lives may be lost. Do not be afraid to say no.
- Maintain ethics: receiving or giving bribes can taint the reputation of the company. It can also be the death of the company or the messenger.
- Plan for all contingencies: particularly in emerging markets, crises and the unexpected will happen. It need not be the end of the company or the employee if sufficient planning is undertaken ahead of time.