Companies looking to invest in emerging overseas markets would do well to look beyond Brazil, Russia, India and China, according to research carried out by Pricewaterhouse Coopers.
The accounting firm's inaugural report, The EM20 Index Balancing Risk & Reward, ranked 20 key emerging markets and found that for manufacturers looking to invest overseas, Egypt is the most attractive destination, while for services businesses, Poland comes out top.
BRIC countries (Brazil, Russia, India and China) continue to offer interesting opportunities for investment--all four appear in both the Manufacturing and Services Indices. However, the results also indicate the emergence of South East Europe as a rising power for both manufacturing and services businesses.
Bulgaria and Serbia are ranked second and third for emerging manufacturing markets, with Romania in seventh place. All three countries are also featured in the top 10 of the services index.
For manufacturing companies seeking to invest in emerging markets, low production costs are a key requirement. Other facts then come into play, including a country's distance from key export markets and the local corporate tax rate. For businesses in the service sector, relatively high GDP per capita levels are a significant factor. Typical service businesses represented in the model would be banks, insurers, media...