In 2013, many executive missed performance targets despite meeting volume and market share goals. The culprit was exchange-rate volatility, which caused many companies to miss revenue and profit targets after local currencies were translated to dollar or euros. According to…
Emerging-Market Meltdown? It’s Time for Action, Not Distraction
The financial media has been dominated by cries of “Emerging-Markets Crisis” in the past week, as both currencies and stock markets tumbled. Corporate executives would be well served to turn off the television and instead take a second look at…
Do You Know Which Emerging Market Is At Risk Of A Liquidity Crisis?
The economy of Ukraine is in serious trouble. To provide some context, Standard & Poor’s recently downgraded the quality of Ukraine’s debt to the same level as Greece. With a current account deficit of about 8 percent of GDP, Ukraine’s…
FSG’s CEO Richard Leggett on MNCs in Emerging Markets—Harvard Business Review
This past Thanksgiving, FSG’s CEO, Richard Leggett posted an article on Harvard Business Review’s website. Weaving in anecdotes from his extensive client experiences and FSG data studies, the article discusses how multinational companies (MNCs) are dealing with the recent economic slowdown…
China’s Shadow Banks Impact Your Global Business
China is the world’s second-largest economy yet many executives ignore it as a source of systemic risk to their global business. The biggest risk in China surrounds its banks, yet we hear little about the problem. Executives in China are…
What the US Government Shutdown Means For Emerging Markets
The Fed will delay the tapering of its bond buying program in response to the US government shutdown. For emerging markets this means a slower pace of currency depreciation into year-end, and the potential for limited short-term appreciation in markets…
Emerging Markets Opportunity Not Over
Recent reversals in capital flows caused large and sudden currency devaluations, faster than many emerging markets expected or could manage. As a result, many market commentators have called this end of the emerging markets opportunity. That statement couldn’t be further…