BUSINESS ADMINISTRATION

National College of Business and Arts

Cor. Regalado St. Commonwealth Ave., Fairview, Quezon City

BUSINESS OPPORTUNITIES IN THE FINANCIAL MARKET

PART 3: FINAL PERIOD

Learning Outcomes:

●​ Understand the Structure of Financial Markets

●​ Identify Business Opportunities
●​ Analyze Emerging Economies
●​ Evaluate Risks and Challenges
●​ Apply Theoretical Knowledge

Course Outline: Business Opportunities in the Financial Market

●​ Overview of Financial Markets

●​ Importance of Financial Markets for Businesses
●​ Key Drivers of Business Opportunities
●​ Examples of Business Opportunities
●​ Defining Emerging Economies
●​ Opportunities in Emerging Markets
●​ Challenges in Emerging Economies
●​ Strategic Business Approaches

COURSE TOPIC:
1.​ Business Opportunities in the Financial Market
a.​ Introduction to Business Opportunities in the Financial Market - Ramos
b.​ Characterization of Emerging Economies' Specifics - Ramos
c.​ Comparative Advantages in Foreign, Direct, and Portfolio Investments - Reonal
d.​ Risks of Business Opportunities in the Financial Market - Reonal
2.​ Foreign Direct Investments
a.​ Introduction to Foreign Direct Investments - Rodulfo
b.​ Formulation of Possible Investment Risks - Rodulfo
c.​ Mechanisms for Minimizing Risks - Rojas
3.​ Emerging Economies
a.​ Introduction to Foreign Trade Potential of Emerging Economies - Rojas
b.​ Explanation of Business Climate Across Regions: - Salazar
i.​ Asia - Salazar
ii.​ Europe - Samson
 BUSINESS ADMINISTRATION
National College of Business and Arts
Cor. Regalado St. Commonwealth Ave., Fairview, Quezon City

iii.​ Africa - Samson

iv.​ Latin America - Sanchez
4.​ Growing Potential of the Market of Services
a.​ Introduction to the Growing Potential of the Market of Services - Sanchez
b.​ Assessment of the Interaction of Emerging Economies with the World Market -
Santos
c.​ Development Perspectives in the Era of Globalization - Santos
d.​ Determination of Current Trends - Vili
 BUSINESS ADMINISTRATION
National College of Business and Arts
Cor. Regalado St. Commonwealth Ave., Fairview, Quezon City

BUSINESS OPPORTUNITIES IN THE FINANCIAL MARKET

A.​ Introduction to Business Opportunities in the Financial Market

Overview: The financial market is a dynamic environment that presents a multitude of

opportunities for businesses and investors, particularly in emerging economies. With
globalization and technological advancements, these markets are evolving rapidly, creating new
avenues for investment and growth.

Introduction: Emerging economies are gaining attention as the fastest-growing sector of the
global economy. Characterized by increasing foreign trade turnover and net capital inflow, these
countries offer attractive prospects for investors seeking higher returns. The growing import
demand and improving export potential in these economies are pivotal in drawing interest from
developed nations. As the world market becomes more interconnected, there are enhanced
opportunities for better capital allocation and production.

The introduction to business opportunities in the financial market covers the dynamism and
profitability of the financial market, along with its three main submarkets:

(i) stock market (corporate shares),

(ii) bond market (government and corporate bonds), and
(iii) credit market (banks, saving institutions, investment institutions, and agencies).

The first two form the capital market. Two determinants, the risk level and the investment return,
play a decisive role in the structure of investment.

The credit market dominated emerging economies in Latin America and Asia until 1990.
However, following the financial crises in the mid-1990s, there was accelerated development in
the bond market, which stabilized conditions and created more investment opportunities.

Examples:

●​ Brazil: Brazil has shown significant growth in its financial markets, particularly in
agribusiness and energy sectors, attracting substantial foreign investment.
●​ Vietnam: Vietnam is transitioning from a credit-dominated market to a diversified
financial landscape, with burgeoning stock and bond markets, making it a hotspot for
investment.
●​ India: The Indian economy has seen rapid growth in technology and service sectors,
coupled with a rise in consumer demand, making it an attractive destination for investors
looking to capitalize on a large and youthful population.
 BUSINESS ADMINISTRATION
National College of Business and Arts
Cor. Regalado St. Commonwealth Ave., Fairview, Quezon City

B.​ Characterization of Emerging Economies Specifics

●​ Anglo-Saxon Model (Example: U.S. and U.K.)
In economies like the United States and the United Kingdom, the
Anglo-Saxon model prioritizes capital markets, particularly stock markets. Here,
companies rely on equity financing through stock offerings to raise capital, which
encourages a competitive, investor-driven market. This model typically results in
dynamic capital markets that support rapid innovation and diversified investment
opportunities but can be volatile.

●​ Credit-Based Model (Example: Japan and East Asia)

Conversely, the industrialization success of countries like Japan, South
Korea, Thailand, Malaysia, Indonesia, India, and China demonstrates a
credit-based model, where government-regulated credit systems support
development. In these economies, banks play a central role in funding industries,
often with government backing and strategic support, which fosters stability and
enables targeted industrial growth. For instance, Japan’s government-supported
credit system in the post-WWII era helped rebuild and rapidly industrialize the
nation. Similarly, South Korea’s economy was transformed in the latter half of the
20th century by state-directed credit aimed at key industries.

●​ GDP and Currency Reserves as Stability Indicators

Emerging economies are recovering from past financial crises (such as
those in Latin America and Asia during the 1990s) and are now experiencing
steady growth. For example, from 2000 to 2005, the average GDP growth rate
was around 3.2-3.5%, with forecasts of up to 4.5% for the 2004-2006 period. As a
result, many emerging economies are accumulating hard currency reserves, which
boost their purchasing power and enhance their economic stability. This trend
reflects their resilience and strengthens their capacity to participate in global
trade.

Another factor is the positive trend of some key macroeconomic fundamentals such as:
1.​ increased propensity to invest and higher investment return;
2.​ downsized and better-controlled budget deficits;
3.​ lower inflation;
4.​ higher employment;
5.​ stabilization of the balance of payments and the net exports;
6.​ more reliable banking system;
7.​ sustained inflow of direct investments;
 BUSINESS ADMINISTRATION
National College of Business and Arts
Cor. Regalado St. Commonwealth Ave., Fairview, Quezon City

8.​ further liberalization of the foreign trade and the capital markets.

C.​ Comparative Advantages in Foreign, Direct, and Portfolio Investments

Understanding the different types of foreign investments — foreign direct investment

(FDI) and portfolio investment provides insight into how countries attract capital and manage
their economic growth.

1.​ Foreign Direct Investment (FDI)

FDI occurs when foreign investors directly invest in businesses or assets in
another country.
●​ Stability and Lower Risk: FDI is often perceived as a more stable investment
because it typically involves long-term commitments. Investors are more likely to
support projects that contribute to job creation and economic stability in the host
country.
●​ Employment Generation: FDI can lead to increased employment opportunities,
boosting local economies and reducing poverty levels.
●​ Sustained Inflows: Countries with favorable conditions, such as political stability
and good infrastructure, attract sustained inflows of direct investments.

2.​ Portfolio Investment

Portfolio investment involves the purchase of financial assets such as stocks and
bonds.
●​ High Yield Potential: Emerging markets often offer higher interest rates than
developed economies, attracting investors looking for better returns. Instruments
like government securities provide options in both local and hard currencies,
enhancing yield potential.
●​ Diversification: Portfolio investments allow investors to diversify their holdings,
which can mitigate risks. The opportunity to invest in various sectors and regions
is appealing, especially for those looking to balance their investment portfolios.
●​ Lower Risks and Higher Returns: Investors in emerging markets are drawn to
the potential for higher returns while managing risks through diversification
strategies.

Importance of Capital Inflows for Host Countries

1.​ Limited Domestic Financial Resources: Many governments face challenges with
limited and costly domestic financial resources. By issuing government securities in hard
 BUSINESS ADMINISTRATION
National College of Business and Arts
Cor. Regalado St. Commonwealth Ave., Fairview, Quezon City

and local currencies, they can attract external funding at a lower cost than domestic
borrowing.
2.​ Crowding-Out Effect: When governments borrow excessively, it can lead to a
crowding-out effect, where limited investment resources are diverted away from private
businesses. This scenario raises costs for private sector investments, potentially stunting
economic growth and innovation.
3.​ Hard Currency Securities: The trend toward issuing hard currency-denominated
securities is rising, as it allows governments to manage their foreign debt servicing costs
more effectively. This practice helps maintain fiscal health and stability.
4.​ Currency Imbalances: Insufficient capital inflows can result in government borrowing
from national sources in hard currencies, creating imbalances in the foreign exchange
market. This situation can lead to inflationary pressures, further complicating economic
management.

D.​ Risks of Business Opportunities in the Financial Market

Investing in financial markets, particularly in emerging economies, offers substantial

opportunities but is fraught with risks. Understanding these risks and employing effective risk
management strategies is essential for investors.

Key Risks in Emerging Financial Markets

1.​ Financial Crises: Sudden financial crises can occur in emerging markets due to various
factors, including macroeconomic imbalances, external shocks, or domestic policy
failures. These crises can lead to rapid declines in asset values, affecting investor
confidence and market stability.
2.​ Governmental Insolvency: High levels of national debt or poor fiscal management can
lead to governmental insolvency. A government defaulting on its obligations can result in
severe repercussions for the financial market, affecting investor confidence and the value
of securities.
3.​ Political Risk: Emerging markets often experience high political risk due to instability,
changes in government policies, or geopolitical tensions. Such unpredictability can create
volatile market conditions that impact investment outcomes.
4.​ Challenges in Exit Strategies: During economic downturns, investors may face
significant challenges in executing exit strategies. Events like the Asian financial crisis,
as well as financial collapses in Mexico and Brazil, highlight the difficulties of
liquidating investments during adverse market conditions.
5.​ Contagion Effect: Problems in one emerging market can quickly spread to others, a
phenomenon known as the contagion effect. For instance, economic troubles in Argentina
 BUSINESS ADMINISTRATION
National College of Business and Arts
Cor. Regalado St. Commonwealth Ave., Fairview, Quezon City

can adversely affect related securities in neighboring countries, amplifying losses for
investors across the region.

Two Main Techniques of Lowering the Risk:

●​ Portfolio Diversification. Diversifying investments across different asset classes,
sectors, and geographical regions helps spread risk and reduce the impact of adverse
events in any single market.
●​ Hedging. Hedging involves taking offsetting positions in related securities (such as
options or short sales) to mitigate potential losses. This strategy can protect investors
from adverse price movements and stabilize returns.

Why invest in the capital markets of the emerging economies?

●​ Higher investment return, based on the higher interest rates than in the developed
countries.
●​ Enough variety of government and corporate securities denominated in convertible
currencies.
●​ An opportunity to diversify the portfolio among different countries and region.
●​ Tax preferences in the issuing countries, secured by double taxation treaties.
 BUSINESS ADMINISTRATION
National College of Business and Arts
Cor. Regalado St. Commonwealth Ave., Fairview, Quezon City

FOREIGN DIRECT INVESTMENTS

A.​ Introduction of Foreign Direct Investments

Foreign Direct Investment (FDI) plays a crucial role in global economic development
by facilitating the transfer of capital, technology, and skills across borders. The magnitude and
pattern of FDI toward a particular country or region differ in correspondence with a few crucial
factors:
a.​ Level of socio-economic development - Countries with higher levels of socio-economic
development attract more investment.
b.​ Natural resources - Nations rich in resources such as oil, minerals, or agricultural
products draw foreign investors seeking to utilize these assets.
c.​ Functionality of market institutions and mechanisms - Well-functioning market
systems and institutions enable smoother operations for foreign businesses, encouraging
investment.
d.​ Character of the host-country's economic policy - The host country's economic
policies, including tax incentives and regulations, can either promote or hinder foreign
investment.
e.​ Stability of the foreign-exchange market - A stable foreign-exchange market reduces
the risk associated with currency fluctuations, making the country more attractive to
investors.
f.​ Political stability - A stable political environment assures investors that their
investments are safe from sudden changes or unrest.
g.​ Legal system and law enforcement - A strong legal framework and effective law
enforcement protect foreign investments, providing reassurance to investors.

B.​ Formulation of Possible Investment Risk

Investing in a foreign country comes with various risks that can impact the success and
profitability of Foreign Direct Investments (FDI). Several critical factors contribute to these
risks:

1.​ Market Risk (Level of Socio-Economic Development) - A country’s socio-economic

development influences its market size and purchasing power. In less developed regions,
limited infrastructure and lower consumer income can result in insufficient demand for
products, negatively affecting investment viability.
 BUSINESS ADMINISTRATION
National College of Business and Arts
Cor. Regalado St. Commonwealth Ave., Fairview, Quezon City

2.​ Resource Risk (Natural Resources Endowment) - Resource-rich countries face risks
due to fluctuations in commodity prices. If market conditions change, investors may
experience volatility in returns, complicating their investment strategies.
3.​ Institutional Risk (Functionality of Market Institutions) - The efficiency and integrity
of market institutions are vital for smooth business operations. Weak or corrupt
institutions can lead to bureaucratic delays and lack of transparency, increasing
operational risks for foreign investors.
4.​ Economic Risk (Host-Country Economic Policy) - Unfavorable or sudden changes in
economic policy can impact the profitability and operational viability of foreign
investments, posing significant risks to investors.
5.​ Currency Risk (Stability of the Foreign-Exchange Market) - Fluctuations in the
foreign-exchange market create financial risks. Instability in currency values can affect
investment returns and operational costs, leading to uncertainty in profit margins.
6.​ Political Risk (Political Stability) - A stable political environment is essential for
foreign investments. Political unrest or changes in government can disrupt the business
climate, increasing investment risk.
7.​ Legal Risk (Quality of the Legal System and Law Enforcement) - A weak legal
framework can jeopardize foreign investments. Insufficient legal protections make it
challenging to enforce contracts and safeguard intellectual property rights, potentially
leading to significant losses.

In light of these risks, investing in emerging economies offers several significant

ADVANTAGES for foreign investors:
●​ Expanding Domestic Markets
●​ Elimination of Import Restrictions
●​ Improving Market Structure and Competitiveness
●​ Qualified, Motivated, and Cost-Effective Labor
●​ Re-allocation of Production Facilities
●​ Tax Incentives and Government Export Stimuli
●​ Utilization of Trade Preferences

C.​ Mechanisms for its Minimization

1.​ Government Support: Governments provide various incentives to foreign
investors which include financial and non-financial support, aimed at facilitating
investment and reducing operational risks.
2.​ Alignment with Prioritized Sectors: Governments prioritize specific sectors for
foreign investment based on their potential for economic growth and job creation.
 BUSINESS ADMINISTRATION
National College of Business and Arts
Cor. Regalado St. Commonwealth Ave., Fairview, Quezon City

This alignment helps in channeling investments into industries that can yield
maximum benefits for the economy.
3.​ Legal Protections: Strong legal frameworks are essential for protecting foreign
investments and ensuring investor rights. This includes comprehensive
intellectual property rights (IPR) regulations, which safeguard innovations and
inventions, thus encouraging foreign companies to invest in sectors where they
can generate significant intellectual input.
4.​ Quality of Legal Systems: The effectiveness of a country’s legal system greatly
influences investment decisions. A robust legal system that ensures fair contract
enforcement and efficient dispute resolution provides investors with confidence
regarding the security of their investments.
5.​ Market-Oriented Strategies: Such as promoting regional integration and
export-oriented production, align foreign investments with the actual needs of the
local economy. This approach helps attract investments that foster
competitiveness in local markets and create jobs.
6.​ Multilateral Support: Partnerships with international organizations, such as the
World Bank or the International Finance Corporation (IFC), help mitigate risks
associated with foreign investments. These organizations provide not only
financial support but also technical assistance and capacity building which helps
in aligning local policies with international standards. Such multilateral
partnerships can significantly boost investor confidence by demonstrating a
country’s commitment to stability and growth.
 BUSINESS ADMINISTRATION
National College of Business and Arts
Cor. Regalado St. Commonwealth Ave., Fairview, Quezon City

EMERGING ECONOMIES

A.​ Introduction of Foreign Trade Potential of the Emerging Economies

The foreign trade turnover reflects the state of an economy and its export and import
potential. The capacity of national and regional markets and their development trends are key
factors in determining the scale and structure of international business activities. There is a
strong interdependence between the development of export potential and foreign direct
investments (FDI), as export opportunities are crucial for investment returns.

●​ Foreign Trade Turnover: This term refers to the total value of exports and imports
within a specific period. It is an important indicator of economic performance. A high
turnover suggests a vibrant economy that is actively engaged in global trade.
●​ Economic Indicators: The capacity and growth trends of both national and regional
markets significantly influence international trade. Emerging economies often have
considerable growth potential due to expanding markets and increasing consumer
demand.
●​ Interdependence with Foreign Direct Investment (FDI): FDI is when companies
invest in businesses in other countries. It plays a critical role in developing the export
potential of emerging economies. As these economies grow and improve their export
capabilities, they attract more FDI. This, in turn, enhances their ability to trade
internationally.

B.​ Explanation of Business Climate between the regions of:

●​ ASIA
The most impressive boost of merchandise export is in Asia. By WTO
(2005) estimations, five out of the first larger exporters in 2004 were from that
region, China ($593 billion), South Korea ($254 billion), Taiwan ($183 billion),
Singapore ($180 billion), Saudi Arabia ($126 billion), and Malaysia ($127
billion). Asian economies have focused on export-oriented policies and
competitive pricing due to lower production costs. For example, Taiwan’s
diversified exports include electronics and machinery, representing 52% of its
total $125 billion exports, and its per capita exports significantly surpass those of
larger economies.

●​ EUROPE​
Exports from former socialist countries, including former Soviet Union
states, have more than doubled, making Eastern Europe an attractive region for
 BUSINESS ADMINISTRATION
National College of Business and Arts
Cor. Regalado St. Commonwealth Ave., Fairview, Quezon City

foreign investments. Russia led with annual exports of $183 billion in 2004,
followed by Poland ($75 billion), the Czech Republic ($69 billion), Hungary ($55
billion), and Ukraine ($33 billion). This export growth highlights improving
investment and trade conditions, with FDI, including privatization and greenfield
projects, boosting these economies' competitiveness on the global stage. Because
of EU integration, a competent yet affordable labor force, investment-friendly
legislation, and the availability of resources, the economic climate in Eastern
Europe is becoming more and more favorable. These elements encourage growth
and competitiveness on the international scene by drawing in foreign investment,
especially in industries like manufacturing, technology, and energy.

●​ AFRICA​
With the world’s youngest and fastest-growing population (about 60% of
Africans are under the age of 25), the continent is emerging as a magnet for
consumer markets and products, making it an attractive destination for supply
chains. Africa’s export increase was moderate from 1980 to 2003, with only a
60% rise. Key exporters include South Africa ($36.5 billion), Nigeria ($20.3
billion), and Libya ($15 billion). Africa's reliance on raw materials and
commodities means it remains vulnerable to global price fluctuations. South
Africa, however, has some export diversification, including precious metals,
diamonds, and limited capital goods, which provide some economic resilience
compared to other African nations.

●​ LATIN AMERICA​
Latin American countries have shown substantial export growth,
especially in Brazil and Mexico. For example, Brazilian exports include metals
and agro-based products, with exports valued at $97 billion in 2004. Latin
America’s export growth and diversification have been driven by investments
from European and U.S. companies, particularly in manufacturing and
agriculture. However, the region remains vulnerable to global market shifts due to
its reliance on raw and semi-processed goods.
 BUSINESS ADMINISTRATION
National College of Business and Arts
Cor. Regalado St. Commonwealth Ave., Fairview, Quezon City

GROWING POTENTIAL OF THE MARKET OF SERVICES

A.​ Introduction of the Growing Potential of the Market of Services

An observation of the basic trends of liberalization for the industrial and service
sector shows that the liberalization of the latter is much slower. It is a problem because
the quality and the cost of the various services affect, directly or indirectly, the
productivity of the real sector. The Uruguay Round of the GATT (WTO, since January
1995) focused on the liberalization of the service sector. Many of the regional economic
groups and international organizations, OECD for example, also work in that direction.
As a member of the WTO and OECD (since 1996), Korea followed this trend.
-​ Liberalization the service sector globally refers to the process of reducing
or removing restrictions and barriers on trade and investment in services
among countries

B.​ Assessment of the Interaction of the Emerging Economies with the World Market
●​ Korea’s liberalization of its service market following the 1997–1998 financial
crisis, which led to openness in sectors like distribution and entertainment while
partially liberalizing financial services and communication.
●​ World Bank projections indicating significant economic benefits for emerging
economies if the service sector is liberalized.
●​ Growth of service exports among emerging economies, highlighting countries
such as China, South Korea, Singapore, and Turkey, along with the impact of such
growth on competitiveness and trade deficits in services.

C.​ Development Perspectives in the Era of Globalization

●​ Liberalization benefits projected by the World Bank, with significant revenue
potential for emerging economies.
●​ Structural changes in the global economy, which are enhancing the growth of
“other services” (financial, communications, medical, and educational), driven by
new technologies like the Internet and e-commerce.
●​ Service sector growth in Uganda as an example of how specific services (e.g.,
education, logistics, healthcare) can capitalize on globalization to serve regional
markets.
●​ Advantages of foreign trade in emerging economies, detailing how
liberalization, increased demand, and industrialization present unique
opportunities.
 BUSINESS ADMINISTRATION
National College of Business and Arts
Cor. Regalado St. Commonwealth Ave., Fairview, Quezon City

D.​ Determination of the Current Trends

The service sector is experiencing significant growth and transformation globally,
particularly in emerging economies. This growth is driven by factors like increasing
consumer demand, technological advancements, and globalization.

Current Trends:
1.​ Liberalization
●​ Trade Liberalization - Countries are increasingly liberalizing their trade regimes,
reducing tariffs and non-tariff barriers. This facilitates the growth of cross-border
trade in services.
●​ Regulatory Reforms - Governments are implementing regulatory reforms to
create a conducive environment for service providers, both domestic and foreign.

2.​ Rising Importance of Services

●​ Shift from Manufacturing to Services - Many economies are shifting their focus
from manufacturing to services as a major driver of economic growth.
●​ Increasing Share of GDP - The service sector's contribution to GDP is growing
steadily, surpassing the contribution of other sectors in many countries.

3.​ Technological Advancements

●​ Digital Transformation - Technological innovations like the internet, mobile
devices, and artificial intelligence are revolutionizing the way services are
delivered and consumed.
●​ E-commerce and Digital Services - The growth of e-commerce and digital
services is creating new opportunities for businesses and consumers.

4.​ Globalization and International Trade

●​ Cross-Border Trade - The increasing integration of economies has led to a surge
in cross-border trade in services.
●​ Foreign Direct Investment - Foreign direct investment in the service sector is on
the rise, particularly in emerging markets.

5.​ Emerging Economies as Service Exporters

●​ Rapid Growth - Emerging economies like China, India, and Brazil are emerging
as major players in the global service sector, both as consumers and exporters.
●​ Comparative Advantage - These countries often have a comparative advantage
in labor-intensive services, such as IT, business process outsourcing, and
healthcare.
 BUSINESS ADMINISTRATION
National College of Business and Arts
Cor. Regalado St. Commonwealth Ave., Fairview, Quezon City

6.​ Impact of International Instability on Certain Services

●​ Tourism and Hospitality - Tourism is especially sensitive to global instability.
●​ Financial Services - Economic instability, such as the Asian financial crisis of the
late 1990s, exposed the vulnerabilities of financial systems in emerging
economies.
●​ Global Supply Chain and Logistics - Geopolitical tensions, like trade wars or
political conflicts, can disrupt supply chains, making it difficult for logistics
services to operate smoothly.

7.​ Growing Importance of Non-Traditional Services Over Traditional

●​ Information Technology (IT) and E-commerce - The rapid growth of digital
services has transformed industries, with IT services becoming essential for
business operations and consumer interactions.
●​ Financial and Business Consulting - This non-traditional service sector caters to
international business needs and generates substantial revenue, as companies
outsource consulting for specialized advice on finance, legal compliance, and
strategy.
●​ Healthcare and Education - Investment in healthcare and education not only
brings in foreign revenue but also enhances the skills and well-being of the
domestic population.

Advantages of foreign trade business in emerging economies:

●​ Ongoing liberalization of trade regulations.
●​ Excellent opportunities for re-export from special free trade zones.
●​ Increasing purchasing power and higher demand for consumer durables and nondurables.
●​ Large-scale industrialization driving demand for capital goods, including advanced
technologies.
●​ Economic restructuring favoring service sector development, creating opportunities for
service imports and exports.
●​ Opportunities for developed-country producers to extend product lifecycles by entering
new markets or niches.
●​ Potential to combine product exports with direct investment and production cooperation,
including subcontracting with local producers, enhancing price competitiveness in host
and global markets.
●​ Improved trade terms with developed countries.
●​ Import opportunities for healthier, organic agricultural products.