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Yum Brands Inc. is a good, if overused, example of a company that has done well with its expansion into China, where it increased the number of KFC and Pizza Hut locations by more than 500 last year.
Yum Brands Inc. is a good, if overused, example of a company that has done well with its expansion into China, where it increased the number of KFC and Pizza Hut locations by more than 500 last year.
(CLARO CORTES IV/REUTERS)

Emerging markets: Pick your multinational carefully

One of the most popular strategies for investing in emerging markets has been to avoid them. That is, forget about China, India and Brazil, and instead invest in North American- and European-based multinationals that have expanded aggressively into these countries.

That way, you get exposure to fast-growing economies with rising consumer spending. And you don’t have to surrender the management talent and higher accounting standards normally associated with developed markets.