The Possibility of Investing in a Developing Country Essay

The Possibility of Investing in a Developing Country - Essay Example As the discussion stresses the combination of the latter two factors is actually what brings out the beauty of doing business in country B. Rarely is it possible to find that an investment idea that is both cheap and popular. However, choosing to take one’s business to developing nations is likely to change all of this in one instant. (Vernon, 2001) Research conducted earlier this year in Europe indicated that close to forty six percent of investors are choosing to take their businesses to emerging markets. What this means for the company is that there will be substantial levels of capital getting into such an economy thus reflecting on the overall returns obtained there. In 2008, it was asserted that percentage returns from emerging economies approximated to about fifteen percent. One the other hand, the level of returns from developed nations was eleven point one percent. Consequently, this company will be at a better footing if they chose to invest in country B which is an emerging economy. From this paper it is clear that some experts may argue that launching one’s services or products into a lucrative area is always a risky thing to do because one can never be sure when investment costs will go up or down. Consequently, it is always advisable to be cautious. However, projections made about developing countries have indicated that prices are likely to remain positive and that returns will still be higher in developing nations rather than in developed ones.