Developed & emerging markets
The financial industry makes a distinction between two main categories of international markets: developed and emerging.
The two typically differ in size, liquidity, risk, volatility, accessibility, and the impact they have on the global economy — though there are no hard and fast rules that differentiate the categories.
The developed markets include the U.S., Japan, Western Europe, Canada, New Zealand, and Australia. They account for more than 80% of the market capitalization in the global equity market. The nations of Asia (excluding Japan), the Indian subcontinent, Eastern and Central Europe, the Middle East, Africa, and South America are generally considered emerging markets.
But you'll find that, within each category, individual markets vary. For example, some emerging markets are more mature and stable than others, and tend to attract more investor attention. South Korea is one example. Singapore is another. And certain developed markets may experience long periods of stagnation, as Japanese markets have in recent years.
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Jeffrey Rosensweig, Goizueta Business School, Emory University 