Opportunities abound as more emerging markets adopt free enterprise. Big Four giants Brazil, Russia, India and China will likely outpace the G7 within 20 years, and the 'Next Eleven' nations are on track to join them. Nascent or 'southern' economies now comprise nearly half of world trade, their multinationals rivaling traditional 'northern' economies at home and abroad. Some of these newly competitive economies will build on democratic foundations, trade on even footing with established markets and perhaps coalesce into regional trading blocs. Others will wrestle with political instability, corruption or other challenges. Smart businesses anticipate and prepare for all such prospects before entering new territory.
Corporations and governments engaged with emerging markets must guard against pitfalls including lax regulatory enforcement, labor conflicts and untested supply chains. Apply PwC’s international experience to your overseas risk analyses, property rights questions and privatization issues. Good due diligence goes a long way toward safeguarding your foray into new markets, and should be central to any company's expansion strategy.