Hello and welcome to the first Someplace Else Ireland blog.
This week I’m going to write about the new breed of multinational companies in emerging markets that are storming into Europe and America.
Take Indian giant Tata Motors as a prime example - it now looks likely to purchase Jaguar & Landrover, two legendary British brands from Ford, America’s stumbling giant. How many people have heard of Embraer, a Brazilian aircraft company? It is now the third biggest in the world (after Boeing & Airbus), has 95% of it’s sales outside of Brazil and has overtaken Canadian based Bombardier as the worlds leading maker of regional jets. Consider Cemex, the Mexican cement giant with $18 billion in sales last year, who astonished industry experts by purchasing UK based RMC for $5.8 billion in 2005.
These companies are exceptional but they are merely leading as opposed to bucking the trend of emerging market corporations strutting the global stage. According to a recent article in The Economist, foreign direct investment from developing countries in 2006 reached $174 billion – 14% of the worlds total, up from just 5% in 1990. Cross border Mergers and Acquisitions from developing countries increased from $20 billion in 1998 to $120 billion in 2006! What an incredible performance.
It seems like developing economies have never had it better. Even though emerging market corporations are investing huge amounts abroad, their governments are receiving much more from wealthy countries - €200 billion more flows into developing economies than flows out (UN statistic). For a European example look no further than the capital city of Romania, which is attracting billions in FDI from corporate giants such as Nokia, Microsoft, IBM & KPMG.
While people can be forgiven for getting down on the constant negative media coverage of the Irish property market, the Irish manufacturing industry and the possibility of a recession in the US, it seems to me that the opportunities for making money have never been better.
It can all be boiled down to a simple message - study and invest in emerging markets.
Best Regards
Colin Murphy
Director
Someplace Else Ireland Ltd
This week I’m going to write about the new breed of multinational companies in emerging markets that are storming into Europe and America.
Take Indian giant Tata Motors as a prime example - it now looks likely to purchase Jaguar & Landrover, two legendary British brands from Ford, America’s stumbling giant. How many people have heard of Embraer, a Brazilian aircraft company? It is now the third biggest in the world (after Boeing & Airbus), has 95% of it’s sales outside of Brazil and has overtaken Canadian based Bombardier as the worlds leading maker of regional jets. Consider Cemex, the Mexican cement giant with $18 billion in sales last year, who astonished industry experts by purchasing UK based RMC for $5.8 billion in 2005.
These companies are exceptional but they are merely leading as opposed to bucking the trend of emerging market corporations strutting the global stage. According to a recent article in The Economist, foreign direct investment from developing countries in 2006 reached $174 billion – 14% of the worlds total, up from just 5% in 1990. Cross border Mergers and Acquisitions from developing countries increased from $20 billion in 1998 to $120 billion in 2006! What an incredible performance.
It seems like developing economies have never had it better. Even though emerging market corporations are investing huge amounts abroad, their governments are receiving much more from wealthy countries - €200 billion more flows into developing economies than flows out (UN statistic). For a European example look no further than the capital city of Romania, which is attracting billions in FDI from corporate giants such as Nokia, Microsoft, IBM & KPMG.
While people can be forgiven for getting down on the constant negative media coverage of the Irish property market, the Irish manufacturing industry and the possibility of a recession in the US, it seems to me that the opportunities for making money have never been better.
It can all be boiled down to a simple message - study and invest in emerging markets.
Best Regards
Colin Murphy
Director
Someplace Else Ireland Ltd
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