Emerging markets are countries that are experiencing rapid economic growth and industrialization but have not yet reached the status of developed nations. These markets often have increasing levels of foreign investment, a growing middle class, and improving infrastructure. Examples include countries like Brazil, India, and South Africa. Investors are attracted to emerging markets due to their potential for high returns, as these economies can grow faster than those in developed countries. However, investing in these markets also comes with risks, such as political instability and fluctuating currencies, which can affect investment outcomes.