Briefing on the question of whether capital generated in the industrialized countries is finding its way to the less-developed and emerging markets according to the Old World bank and OECD and others© BrainMass Inc. brainmass.com October 9, 2019, 6:09 pm ad1c9bdddf
It is indeed true that capital generated in the industrialized countries such as US is finding its way to the emerging economies and countries such as China. The primary reason for such a trend is the attractive investment opportunities offered by these countries and weak economic conditions in developed countries like USA. In the last few decades, emerging economies such as China and India have developed substantially and emerged as one of the fastest and largest markets in the world for global corporations.
Further, the substantial growth in globalization and international trade due to increasing foray by big companies into global markets, both for increasing their sales as well as outsource their manufacturing operations and sourcing of raw materials, has provided substantial comparative advantage to these countries. It is for these reasons only that emerging markets like China and India are now on their course to become global superpowers and increasing amount of capital from developed countries is finding its way into these countries.
Emerging markets seduce the corporate players for many a reason, some of which are as follows:
Potential for immediate added sales
Briefing on the question of whether capital generated in the industrialized countries is finding its way to the less-developed and emerging markets according to the Old World bank and OECD and others