There is no doubt that the economic climate is having an impact on companies from all sectors.

With the financial and economic climate worsening on a global basis, the strongest players still remain the economic powerhouses of the high growth markets.

With growth still reported at healthy levels, even though no longer double digit, companies from high growth markets are still looking at how they can grow, develop and diversify their businesses.

For the savvy management teams within these countries, now is a good time to be looking at joint ventures and acquisitions that will enable their business to obtain the skills that they readily need.

For a number of years, the key advantage for these businesses has been their ability to deliver labour intensive manufacturing at a low cost and exporting production to the West. It is primarily from this type of activity that the high growth nations have developed and built their commercial structure. However, as they turn their attention to moving up the value chain and in particular into Western countries, this model will no longer work. Instead, the management teams of these businesses are looking at ways to acquire the skills and knowledge they need in order to differentiate in these marketplaces.

Technology, brand and distribution channels are three key elements that companies from high growth markets are looking to acquire for their operation. It is for these attributes that local businesses are becoming increasingly attractive.

With economic conditions worsening across the region, it is important that joint venture, strategic alliances or even acquisitions should be considered carefully in order to safeguard the business, regardless of whether the level of trade is strong.

Businesses cannot ignore the growth potential that these markets are offering, even in today’s climate. In the same way that Chinese companies have readied themselves for the attention of Western suitors, local businesses should take a step back and look at their business as a potential investor would.

Regardless of the outcome, taking a detached view of a business is pertinent in times of economic turmoil.