Nowadays, the world is becoming globalized.; The globalized or open economy is one that has liberalized trade and capital movements (Thorbecke et al 2003, p.154). Thorbecke et al. also noted that openness through trade, foreign direct investment and financial markets increases the movement of goods and capital across national borders (ibid., p. 156). Therefore, most countries participate in international trade as their economies are opened to competition from others. Emerging industries are the most affected by this competition. Emerging or nascent industry is a nuance of industries in their early stage of development/growth (Tribe 2000, p. 31). Emerging industries can be divided into two groups; : absolute emergence is a new industry that does not exist elsewhere, which is generally technologically intensive and which is predominant in developed countries (Castel-Branco 2002, p.46); and relatively emerging industries are often new in the countries of origin, usually developing countries, but in other countries, such as the industrialized world, they are already mature or developed (Castel-Branco 2002, p. 48). The terms Definitions of developing, underdeveloped or less developed economy are used to describe countries that are economically backward and in need of improving their living conditions (Sen 1988 p.11). The essay will analyze the challenges of emerging companies in the context of globalization and development. underdeveloped world. Due to its narrow scope, the trial will only address three challenges, namely technological capacity, industry reputation and availability of capital for investment. First, it will address issues related to technological capacity. Second, it will examine the role of reputation of emerging industries domestically and internationally...... middle of paper ......ty of companies in enhancing the credibility and capacity of countries to create a good environment develop these industries through better infrastructure. The solution to these problems lies in government intervention by selecting certain potentially nascent industries for protection. This intervention is necessary because the market itself cannot handle these problems. This must be done by first taking into account the internal market so that it can promote openness to foreign trade (UNIDO 1997, p.27). Therefore, the government must formulate policies to protect new industries and guide them in the right direction to be competitive in the international market, otherwise industries alone will not be able to reach this stage of maturity. This means that infant industries in developing countries may die before reaching maturity..