Investment Finance in Emerging Economies

by

ACKNOWLEDGEMENT

I would like to express my thanks to my advisor, for his suggestions, comments, patience and understanding. Very special thanks to my parents, my father, my mother, my brother and my sister who were continuously supporting me throughout my life and leaving me free in all my decisions. I would also like to thank my colleagues for his technical support whenever I needed. I would like to thank to Department, all the university managers, teachers and students with whom I have worked.

I certify that the work presented in the dissertation is my own unless referenced

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DECLARATION

I declare that the contents of this dissertation/thesis represent my own unaided work, and that the dissertation/thesis has not previously been submitted for academic examination towards any qualification. I further declare that this work has not previously been presented in whole or part, for any other award, or published in whole or in part elsewhere, including this university. Furthermore, it represents my own opinions and not necessarily those of the University.

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ABSTRACT

Emerging economies are considered intermediary, which means that they are in the course of accelerating to an open economy from a closed market economy. During this process they are constructing credibility in market. Examples of such emerging economies include Russia and eastern European nations. As an EME, a nation can embark on an economic transformation plan which will result in making that nation strong and achieve economic stability. It will also result in clearness and effectiveness in the capital market. An emerging market also transforms its system of rate of exchange because the confidence in economy is high when the currency of that nation is stable and strong, particularly when foreign investors are interested in investing. One primary feature of an emerging economy is the increment in investment from both local portfolio investors and foreign direct investors. If both foreign and domestic investors own the common stock, then only a portion held by foreign investors is considered to be foreign investment, and if only a threshold percentage is attained, that is deemed to give the foreign investor control of the business. The purpose of this study is to discuss the concept of investment finance in emerging economies.

TABLE OF CONTENTS

ACKNOWLEDGEMENTII

DECLARATIONIII

ABSTRACTIV

CHAPTER 1: INTRODUCTION1

Background of the Industry1

Tesco PLC Company Profile4

Research Aims and Objectives7

Scope of the Research7

Structure of the thesis8

Chapter I: Introduction8

Chapter II: Literature Review8

Chapter III: Methodology9

Chapter IV: Data analysis and Discussion9

Chapter V: Conclusion10

Summary of the chapter10

CHAPTER 2: LITERATURE REVIEW11

Economic Growth11

What are Emerging Markets?13

Emerging European markets16

Priorities for the European Investment Bank18

Economic Principles of Foreign Investment in Emerging Economies19

Impacts of Foreign Investment21

Portfolio Investment and Risks23

Local Politics vs. Global Economy23

Opportunities and challenges in emerging markets24

Investing in Emerging Economies26

Foreign Direct Investment in Emerging Economies29

Summary of the chapter32

CHAPTER 3: METHODOLOGY33

Methodology35

Role of the Researcher35

Researcher Bias36

Qualitative Research36

Quantitative Research36

Rationale for a Qualitative Study37

Search Technique38

Research Method39

Primary Data39

Secondary Data40

Research Design41

Additional Online searches43

Ethical Concerns43

Quality and Verification44

Reliability/Dependability45

Validity47

Informed Consent47

Confidentiality48

Summary of the chapter48

CHAPTER 4: DISCUSSION AND ANALYSIS50

Findings from the Literature review50

Findings from the Interview Survey53

Planning on doing business with emerging market53

The most important emerging markets54

Type of business ...