When countries are making the transition from developing to developed, their economies are referred to as emerging markets. They’re usually undergoing notable economic growth and have characteristics of a developed country. Additionally, emerging market economies have low to middle per capita income – a measure of the average income each person earns in a country, city, or region. Examples of emerging markets include China and India. The goal of emerging markets is to increase their production capacity to improve economic growth and the quality of life for their citizens. Emerging market economies can also be an attractive opportunity for investors. Understanding Emerging Markets There are several characteristics of an emerging market and some are listed below. Growth and Investment Potential: When economies are in a transitional period, they’re usually becoming attractive to investors. Foreign investors, in particular, may be attracted to investing in the country because of a potential high return on investment. Countries with emerging markets usually need that capital to transition into a developed economy since they tend to have a lack of domestic capital. Market Volatility: Emerging markets usually have some market