The ins and outs of emerging markets
Emerging markets are an integral part of the global business scene. The 1997 Asian meltdown and the Russian debt default scared investors, but as the domestic market becomes more overvalued, investors have begun seeking returns elsewhere. Destined to become a standard in the field, Emerging Markets fills the niche for a balanced evaluation of the investment opportunities in the riskiest markets throughout the world. This practical guide covers what an emerging market is, why corporations and investors should or should not invest in them, and what the risks are. Jeffrey Hooke's new book is ideal for corporations and investors who are starting to look to emerging markets as ways to improve investment returns, expand into new markets, or diversify their portfolios.
Jeffrey C. Hooke (Chevy Chase, MD) is Managing Director of Hooke Associates, LLC, an investment banking firm. He was formerly director of Emerging Markets Partnership, a $4 billion fund focusing on emerging markets, and senior investment officer of the World Bank Group.
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JEFFREY C. HOOKE is Managing Director of Hooke Associates, LLC, an investment banking firm based in Vienna, Virginia. He was formerly director of Emerging Markets Partnership (a $4 billion fund focusing on emerging markets), principal investment officer of the World Bank Group, and an investment banker with Lehman Brothers and Schroder Wertheim. Mr. Hooke is also the author of Security Analysis on Wall Street: A Comprehensive Guide to Today's Valuation Methods and M&A: A Practical Guide to Doing the Deal (both from Wiley).
A practical and well-balanced look at the opportunities and pitfalls ahead in emerging markets
"Jeffrey Hooke has taken his years of experience in the field and produced a thoughtful and realistic guide to the business challenges of emerging markets. It is valuable reading for all who seek to do business in these economies."-James A. Harmon, former Chairman and President of the Export-Import Bank of the United States
"Besides its insightful anecdotes about what it takes to do business and invest in the emerging markets, this book provides the reader with a solid foundation and practical guidelines to approach these markets with the requisite understanding of its hidden risks and opportunities. It is a must-read for neophytes and all those investors and decision-makers who intend to make these markets an integral part of their professional surroundings."-Andre J. Cracco, Director, Corporate Finance Services, World Bank Group
"Eureka! A hard-biting account of many business realities in emerging markets. A must-read before you cross the border."-Andrea M. Esposito, Director, Standard & Poor's
"An integral guide to the emerging markets. This book provides the reader with essential insights into the risks and opportunities of new economies."-James J. Wallace Jr., Executive Vice President, Bank of Tokyo-Mitsubishi
Billions of dollars have flowed into the economies of emerging markets from businesses seeking higher rates of return. At first, this investment produced enormous profits, but later performance was tempered by the Asian market collapse in 1997 and the Russian debt default in 1998. Now, as domestic markets become increasingly competitive, corporations are once again looking for new opportunities in each of the world's 156 emerging markets. To succeed, they must understand the unique business environment that these markets represent.
Emerging Markets explores the patterns of business behavior and market conditions that repeat themselves in developing countries and provides prospective investors with the tools and insights needed to make sound financial decisions. A practical and well-balanced approach is provided so that you can realistically size up the advantages and pitfalls ahead.
Investment banker Jeffrey Hooke first explains what emerging markets are and then discusses why companies should or should not invest in them. He includes detailed examples of his own experiences as well as the experiences of dozens of executives active in Latin America, Asia, Eastern Europe, and Africa. This valuable insight will help you gain a better understanding of the situations that you may face as you prepare to expand your operating business, lending activity, or equity portfolio into new markets.
Along with the business and financial risks involved, Hooke uncovers the uncertainties that you must be aware of when investing in the developing world, including:
* The hidden barriers of entry for foreigners
* Capricious and discriminatory government actions that lessen an investment's value
* Large, downward fluctuations in a country's economic performance that are difficult to anticipate
* Substantial devaluation of the local currency and the inability to change the currency into U.S. dollars
* The lack of accurate and timely information
Emerging Markets provides you with proven strategies to reduce the risks in order to achieve higher rates of return. You'll quickly find out how to evaluate emerging market opportunities so you can make the most informed decisions.
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