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When should a company choose NOT to engage in an emerging markets? Any examples or experiences to...

When should a company choose NOT to engage in an emerging markets? Any examples or experiences to share?

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Some of the risks involved in the emerging market, such as political risk which makes emerging market more unstable and can cause serious implications on investors and economies, may have insufficient labor and raw material and most importantly, volatility of the dollar with respect to the emerging market currencies, cultural risks emerges to try business in new cultural settings, access to new capital, lesser protection towards corruption, etc. For example, US based organization may face issues in emerging market with limited legal and ethical environments, or may have challenging time in understanding to do business in countries like China or Brazil which are totally different in cultural aspects. Small companies may face issue due to currency exchange rate and may lead to revenue loss. Hence, some of the companies choose NOT to engage in an emerging markets.

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