Explore BrainMass

Explore BrainMass

    Global Financial Management

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    Q1) Major multinational organizations such as Acme (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 5-6 paragraph executive briefing on the question of whether capital generated in the industrialized countries is finding its way to the less-developed and emerging markets.

    Q2) Is there some critical distinction between "less developed" and "emerging"?

    © BrainMass Inc. brainmass.com March 4, 2021, 8:37 pm ad1c9bdddf

    Solution Preview

    The response addresses the queries posted in 787 words with references.

    //The paper is based on the global financial management. In this discussion we are describing that in which countries the capital generation can be enhanced in better ways by the organizations. The discussion is including the comparison of industrialized countries with less-developed and emerging markets.//

    The industrialized countries are marked with high growth rate, increased urbanization and literacy rates along with saturated market conditions, while the less developed and the emerging markets are characterized by poverty, high birthrates and low growth rate, growing needs of infrastructure, other basic facilities and economic dependence on the advanced market.

    The cost of capital in the industrialized market is very low, while the cost of labor is quite high. On the other hand, the cost of capital in the less developed and the emerging markets is quite high and the cost of labor is quite cheaper. These differences in the cost of labor and the capital of the different industrialized, less-developing and emerging markets have resulted into the movement of labor and capital among them.

    After the 1980's, the investment in the less-developed and the emerging markets have gained a very prominent place in the world portfolio management. The existence of distinctively huge potential for growth of these markets generates higher rates of return on ...

    Solution Summary

    758 Words, APA Words