Major multinational organizations (some of which are listed below) attempt to track the relative movements and magnitudes of global capital investment. Using these web pages and others you may find, prepare a two-page executive briefing (250 words per page) on the question of whether capital generated in the industrialized countries is finding its way to the less-developed and emerging markets. Is there some critical distinction between "less developed" and "emerging?"
The Old World Bank http://www.worldbank.org/
European Bank for Reconstruction http://www.ebrd.org/
The problem wants you to observe the efforts of the major multinational organizations to track the movement of capital from the industrialized countries to less-developed and emerging countries. Their efforts are well documented on their web sites. Then the problem wants you to analyze the information and decide if investment from developed countries is really moving to the less developed countries or the emerging markets. The perspective of the banks gives the problem a developmental perspective. Usually, when an investment decision is to be made it is a question on the return on investment and only that investment where the return on investment is highest is the investment is made. In international business other factors like the risk, the political situation in that country and the countries reputation for repatriation are factored in. Finally on the basis of these observations the problem requires you to distinguish between less developed countries and emerging countries.
<br>The problem makes several assumptions, which have not been substantiated. First, the problem assumes that it is possible to track relative movements of global capital investment. This is usually not possible; often the movements are deliberately secret and hidden. For instance a multinational consumer goods company may show that it is ...