«We'll be happy with the 1 % to 2 % growth in the developed North American markets and maintain our presence there,» says Saputo, «but we're tapping into emerging markets that are showing more growth
potential than the developed markets.»
EMs currently account for more than half of the world's GDP and around two - thirds of GDP growth — that economic share is only expected to rise as EMs are projected to grow
faster than developed markets (DMs) in upcoming years.
«Emerging markets are a very heterogeneous group, much more
so than developed markets,» observes James Butterfill, head of research and investment strategy at London - based global investment house ETF Securities.
The Alberta and Canadian governments are more interested in transitioning to renewable energy sources at breakneck speed through Legislative means,
rather than developing the market organically.
Investments in emerging or frontier markets are generally less liquid and less
efficient than developed markets and are subject to additional risks, such as of adverse governmental regulation and intervention or political developments.
I suppose you could argue that emerging markets also have a higher expected
returns than developed markets, and therefore also have higher expected returns to compensate.
Relative to PC market growth, Windows Division revenue was negatively impacted by higher growth in emerging markets, where average selling prices are
lower than developed markets, and the deferral of $ 540 million of revenue relating to the Windows Upgrade Offer.
They offer much - higher growth
than developed markets, and therefore very compelling return prospects.