Foreign investment decisions - Essay Example

Foreign Investment Decisions Q1 One of the major considerations in terms of the movement of money from industrialized nations into emerging markets occurs in actions that are being undertaken by the International Bank. In these regards, it’s noted that, “To fund development projects in member countries, World Bank bonds are issued by the International Bank for Reconstruction and Development (IBRD) in the international capital markets” ("Bonds and investment," 2011). Within this context of understanding it’s clear that money is making it to emerging markets.

Another major element where money from industrialized nations is making its way into emerging markets occurs in Latin America. One specific example of this occurs in the Latin America and Caribbean-OECD Investment Initiative. It’s noted that this initiative aims to, “increase the contribution of private investment to economic and social development in Latin America and the Caribbean” ("Latin america and," 2011). This demonstrates that significant sums are being invested in this developing region through private infrastructure projects.

Still, another prominent area where money from industrialized regions are entering emerging markets can be witnessed in investment opportunities offered by major banking entities. One of the predominant examples in this context occurs as the European Bank for Reconstruction offers an opportunity for individuals to invest in a number of potential emerging markets ("Introducing three new," 2011).Q2 There is a distinction between less developed and emerging markets. In this context of understanding, it’s noted that emerging markets are those that demonstrate a level of advancement in their economic structure throughout a variety of barometers.

Conversely, less developed regions are those that have not yet achieve these stages of economic development. ReferencesBonds and investment projects. (2011). Retrieved from http://treasury.worldbank.org/cmd/htm/index.htmlLatin america and caribbean-oecd investment initiative. (2011, July). Retrieved from http://www.oecd.org/document/2/0,3746,en_2649_201185_45826050_1_1 _1_1,00.htmlIntroducing three new dreyfus funds. (2011). Retrieved from https://public.dreyfus.com/insights-ideas/research- articles/splash/threenewfunds.html