Unilever plc (ADR) (UL), GlaxoSmithKline plc (ADR) (GSK), McGraw Hill Financial Inc (MHFI): Emerging Markets, The Show Must Go On!

Kraft Foods Group Inc (NASDAQ:KRFT) is a food conglomerate with 2012 revenue of $18 billion. In 2012 Kraft split into two independent companies: the North American Kraft Food Group and the global Mondelez International.

Kraft Foods Group Inc (NASDAQ:KRFT) bought out Cadbury in a $19.6 billion deal in 2010. The primary reason for the purchase was the fact that Cadbury provided the entry and scale into the emerging markets that Kraft needed. The valuations for the purchase look high, but the companies believe the growth opportunity offered in these markets should compensate for the hefty price tag. Multinational corporations are taking advantage of their low capital costs and the higher growth potential of emerging markets to make long-term investments in their subsidiaries and acquire companies.

These are companies with fantastic track records, and it’s safe to assume that a lot of thought went into their multibillion-dollar investments in these markets. And you actually have an advantage over these companies: You can take out your money whenever you want.

So it’s a simple and smart strategy to align with companies that are smartly investing in high-growth markets, looking at their long-term potential, and growing with them.

The article Emerging Markets: The Show Must Go On! originally appeared on Fool.com and is written by Shailendra Raghav.

Shailendra Raghav has no position in any stocks mentioned. The Motley Fool recommends Unilever.

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