Compared to the developed nations, the emerging markets present a variety of opportunities for the potential investors. From Solow”s theory of economic growth, the developed nations face constant demand curves as compared to the inclining demand curve facing the emerging nations. (Miller, Thomas, Eden, & Hitt, 2008). This paper tries to explain some of the eminent merits that the potential investor stands to reap by investing their prospects into the emerging markets.

For long, the developing countries have generated exciting investments opportunities in the global scale. The economies in the Asian continent, Latin America and the eastern part of Europe showed growth rates that outpaced the developed nations (Alvi, 2012). They instituted trade reforms that opened the doors to liberal trade and later foreign direct investments from the Americas and Europe.

Unlike the developed countries, the emerging markets are a combination of informed and rational consumers with an appetite for consumer products and infrastructural reforms to enhance their newly acquired lifestyles (Waheeduzzaman, 2011). In terms of demographics, the developing world faces a more active population than the developed regions. The countries have a younger and growing population that provides a growing workforce, bolstered by a high rate of urbanization, which in contrary to the aging population that characterize the developed nations. The expanding labor-force in the cash economy of the emerging markets increases the existing local client base.

The development of critical financial systems and the expedition of the legal process in the upcoming worlds are other attractions to these nations. Most of the nations have made impressive advances in this field and score impressively as compared to the developed countries, for example, Taiwan and Singapore (Alvi, 2012). As a necessity for freer trade, liquidity is a crucial consideration. Government involvement reduces the free float of resources and affects performance of the business. The emerging nations pose high levels of liquidity largely in comparison to the developed worlds.