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Disadvantages of an emerging economy

Updated: 4/28/2022
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11y ago

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While investing in emerging economies can bring major change in the business. Markets are attractive for higher growth, but at the same time more riskier because of political and economic structure and investor can face the sever swing in the market. Ultimate objective could be wealth generation, so the welfare of the citizen may not be the first concern of the business. Government do not influence the investors for setting up the price of products and services they are offering. So no control on the price limitations. business sets the prices according to the cost and expenses generated to produce the product. one major disadvantage of the emerging economy is inequality of wealth, so in this context consumer products are not affordable for every individual in the economy.

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