Operating in Emerging Markets: A Guide to Management and Strategy in the New International Economy

2. Markets and Institutions

Introduction

This chapter traces the evolutionary journey from hunter gatherer societies through the development of the first markets, institutions, and formal forms of organization, such as government. Our objective is to explain some of the concepts we use throughout the book, such as institutions, and outline the factors that shape markets and business environments. To do so, we draw extensively from economics and economic history. The story takes in the development of credit institutions, the formalization of private property rights, and the pioneering steps of companies working in far-flung regions and breaking new ground in commerce, and then reflects on what these things meant for the further expansion of trade. ...