An "Emerging Market" refers to a country that is in the process of rapid growth and industrialization. These nations often have lower income levels compared to developed countries but show potential for significant economic development. Examples of emerging markets include Brazil, India, and China, where increasing investments and a growing workforce contribute to their economic expansion.
Investors are often attracted to emerging markets because they can offer higher returns compared to more established economies. However, these markets can also come with risks, such as political instability and fluctuating currencies. Understanding the dynamics of emerging markets is crucial for making informed investment decisions.