What is the Global Capitalist?
The Global Capitalist is a weekly newsletter focused on international developed, emerging, and frontier markets. Each week, we aim to offer an American perspective on what’s happening in businesses, markets, and economies across the globe.
Mitigating Home Country Bias
Home country bias, as defined by Investopedia, is the inclination for investors to favor companies based in their home country opposed to those found abroad. Outside of just investing, home country bias can be found in our newsrooms, academic institutions, and our own perspectives.
What are emerging and frontier markets?
An emerging market country is characterized by an economy that is not as sophisticated or diverse as those found in developed markets. This could mean lower than average per capita income, volatile currencies, and heightened exposure to global economic contractions. As per MSCI, there are 26 emerging market countries in the world, including China, Russia, India, and Mexico.
A frontier market country is very similar to an emerging market, yet may be too underdeveloped or small to be classified as an emerging market. Frontier markets have the potential to evolve into emerging markets as their economies mature and grow.
Why should we care about emerging and frontier markets?
The United Nations predicts that by 2100, the world population will be north of 11 billion people. While the statistic in itself is astounding, I’m more interested in exploring how this boom will affect our increasingly globalized economy. These people will be important in the future — they are consumers, employers, employees, and entrepreneurs. My goal, in writing this newsletter, is to educate and enlighten readers about some of the fascinating developments unfolding across the globe.
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