Which of the following best defines "emerging markets"?

The definition of "emerging markets" is best captured by identifying countries that are in the early stages of economic growth and industrialization. Emerging markets typically feature transitioning economies that may exhibit rapid growth potential, increased manufacturing development, and an evolving infrastructure. These nations often have a lower GDP per capita compared to developed countries and may face certain economic challenges such as political instability, lack of strong regulatory frameworks, or underdeveloped financial markets. However, they also present opportunities for significant investment returns due to their growth trajectories and expanding consumer bases.

The other options refer to characteristics not associated with emerging markets. Established economic stability is more reflective of developed countries, while high GDP and low poverty rates are indicators of wealth and development, which are not characteristic of emerging markets. Thus, recognizing emerging markets as entities in the nascent phases of their economic and industrial development accurately connects to the nature and dynamics of these economies.