The New Frontiers

The emerging markets have cooled off lately, but they're still growing, even as the rest of the world shrinks. That's one reason why developing countries - and the companies based there-will become more formidable players in the future. A second is that companies on the frontiers saw the downturn coming from developed countries and revised their strategies. They're innovating and improving operations aggressively, while their governments implement policies that will change the game of business. Multinationals need to recognize that and prepare for several tectonic shifts: Developing economies will become less dependent on developed ones, evolve a different model of business leadership, set off countertrends in M&A, and demand unprecedented levels of environmental sustainability. And Africa is poised to become the next hot spot of growth. Reprint R0907U