...Rotterdam | Why investors should invest in emerging markets | Counter argumentative essay | Quincy Barrow 11-7-2016 | Introduction Investors have been attracted to emerging markets since the early 2000s due to their huge growth potential during their economic transition from being a developing country into becoming a developed country. Between the year 2000 and 2011 the rapid growth in nations like Brazil, Russia, India and China - also known as the BRIC nations - has created many investment opportunities for foreign investors. Later countries like Chile, Egypt, Colombia, Qatar, United Arab Emirates, South Africa and Thailand have also been classified as emerging markets based on the MSCI benchmark. This essay touches on the reasons why investors should invest in emerging markets, which risks investors could have and how these risks could be mitigated. Emerging markets have been the drivers of the global economy According to Forbes (N.D.) over 70% of the global economic growth in the recent years has from emerging markets and their growing economies, 40% of which was estimated to have come from China and India. China’s purchasing power is expected to go beyond that of the United States by the end of 2016, despite the growth slowing down in recent years. Also, nations like China and India have had a significant contribution to the growth in the world’s GDP in the last decade, including in the 2008 credit crisis. With the up rise of countries like South Africa...
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...Brazil: An Investor’s Paradise A Proposal on Why Investors Should Be Considering Brazil Introduction Currently, there are four countries that are growing at rates much faster than the average, and will soon be poised to be major players in the world’s economy. Those countries are referred to as BRIC, which stands for Brazil, Russia, India, and China. There is much debate as to which will emerge on top as the dominant world force; however investors are starting to make their predictions clear. Every day, investors are pumping money into the Brazilian economy for a myriad of reasons. But before one can understand those reasons, it is essential to understand Brazil’s background. Part I: Country Background Brazil was originally colonized by Portugal during the early 1500’s. This is evident today, as the official language of Brazil is Portuguese. It is estimated to be approximately 8,514,877 square kilometers, and have a population of 199,321,413, making it the largest country in South America, and the fifth largest in the world in terms of both area and population. (https://international.ipums.org/international/enum_materials.shtml) The political system used is a Federal Republic, and the Head of State is Dilma Rousseff. (https://www.cia.gov/library/publications/the-world-factbook/geos/br.html) While there are several political parties in Brazil, none of them are technically in power. The strongest of the group though is the Worker’s Party. The current type of law practiced...
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...infrastructure, security, technological), identifying positive and negative aspects. Economic The liberation of capital in the country has been successful. Resource and infrastructure development projects on multi-billion dollar scales are rapidly proceeding as both state and private investor begin to invest heavily in large-scale industrial development in Afghanistan Afghanistan is growing but it still has a lot of issues. Unskilled labor force, deep-rooted corruption, destructed infrastructures, drug trafficking, political instability, lack of transparency and accountability at all levels and several other factors contribute to keeping investors away from Afghanistan. Infrastructure The country suffers a lack of electric power; they have to buy electricity to other countries, like Tajikistan and Uzbekistan. The imported power is not enough to lighten the major cities and it is not sufficient to fulfil the needs of heavy machineries used in industry and agriculture sectors. If there is no proper and consistent source of power, attracting international investment will be very tough. Security It is the biggest problem right now in Afghanistan. The insecurity is growing, and year 2011 has been deadlier than previous year. It is the main obstacle for investors right now. The Talibans control parts of the country and drug trafficking is helping them to get more money and, consequently, buy more weapons. Technological Advanced in...
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... 1) Explain why an individual investor might want to invest in an international growth fund? 2) Describe the risks associated with making an investment in an international growth fund. Identify the risks that would be common to domestic and international funds, and those risks that would be unique to international fund. 3) Discuss how the fact that foreign company is not subject to the same accounting, auditing, and financial reporting standards and practices as U.S. companies. 4) Consider the allocations of fund assets by region. Speculate as to why the proportions of fund assets are distributed in this manner. 5) Consider the Country diversification of fund assets. Identify the countries in which the fund is most heavily invested. Speculate as to why this might be the case. Are there and countries in which you would have expected the fund to be invested and it is not? 6) Consider the sector diversification of fund assets. Identify the sectors in which the fund is most heavily invested. Speculate as to why this might be the case. FACTS The Vanguard Group is an investment firm with more than 50 different mutual funds in which the public may invest. Among these funds are 13 international funds that concentrate on investments in non-U.S. stocks and bonds. One of these is the International Growth Fund. The following information about this fund was provided in the fund’s prospectus, dated December 28, 2009. The Fund invests mainly in common...
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...Diamondopolus | Module: | Alternative Investments | Submitted by | Josip Sestan, Chetanna Chukwudum | Submitted: | 06.04.2014 | Content Tables III Figures III Abbreviations IV 1 Overview of Hedge Funds Strategies 1 2 What are Emerging Markets and why are they so important? 2 3 Why do Hedge Funds invest in Emerging Markets 6 4 DWS Invest Global EM Equities LC 8 4.1 Inside the DWS Invest Global EM Equities LC fund 8 4.2 Performance of the fund 10 5 Hedge Funds Performance in EM scientific paper review 11 6 Hedge Funds Strategies in EM and Africa 12 6.1 Investment strategies in more developed EM. 16 6.2 Hedge Fund Strategies within Africa and Sub Saharan Africa 19 7 Risk exposures in emerging markets 23 8 Conclusion 25 References 26 Tables Table 1: Hedge Fund Strategies 1 Figures Figure 1: Emerging Markets vs. Developed Markets 2 Figure 2: Emerging Markets vs. Developed Markets GDP growth in percentage 3 Figure 3: Development of the working-age population 3 Figure 4: EM vs. US: Consumption levels 4 Figure 5: EM dept. has exceeded EM 5 Figure 6: MSCI World vs. MSCI Emerging Markets 6 Figure 7: CS Hedge Fund Index vs CS EM Hedge Fund Index 7 Figure 8: Country distribution 8 Figure 9: Industry Sectors 9 Figure 10: Equity Share Distribution 9 Figure 11: Perfomanc of the fund 10 Figure 12: EM performance 13 Figure 13: Performance of EM 14 Figure 14: Hedge Fund Strategies in Africa 17 Figure 15: Hedge Fund Strategies...
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...corporate bond issued dates back to the construction of railroads after the conclusion of the Civil War. Increasing in popularity each year, the corporate bond issuance rate has been on a steady incline with daily trading in the billions. Corporate bonds are very complex but simple enough to where everyone can increase their wealth by investing in them. Essentially corporate bonds are debt that a company issues to the investor. Issued by either a private or public company, companies use these funds to build facilities, buy equipment and/ or expand their business. These businesses are typically public utilities, transportation companies, industrial corporations, and financial services companies. Investors may invest in corporate bonds when they see an opportunity to make a profit and/or to diversify their portfolio. A risk-averse investor would love corporate bonds because of their predictable returns, dependable income, flexibility and diversification. There are many different types of corporate bonds for the investor to invest in. They have the option to invest in Eurobonds, Rule 144A bonds, Yankee Bonds, and many other options. Although there are many different types of corporate bonds, Eurobonds are one of the most popular ways for a company to issue debt. A Eurobond is a U.S. denominated bond that is issued by an oversees company and held in a foreign institution outside both the U.S and issuers home nation. Many have named the decade of the 1950s the beginning of the Eurobond...
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...New York, you originally own U.S . Dollars). #2 20 POINTS Assume you have $1,000,000 U.S. dollars that you can invest for the next 180 days. Using only the data given below, answer the following questions (a and b): ______________________________________________________________________________ Spot rate: Yen 200 per U.S. dollar 180 - day forward rate: Yen 210 per U.S. dollar Your forecast of the spot rate in 180 days: Yen 190 per U.S. dollar U.S. interest rate (annual): 10% Japanese interest rate (annual): 10% ______________________________________________________________________________ a. In which country would you invest your $1 million if you decided to use the forward market? What total amount (in dollars) would you obtain at the end of the 180 days? Show the necessary calculations. Note: Assume that there are no transaction costs. The current spot exchange is $1 = Y200, in 180 days 200/210 =.95 which is less than what we started with, if my forecast is accurate then 210/190 = 1.1so in 180 I’ll end up with more $1.1M.. in another term with my forecast I’ll profit $100,000 in 180 b. In which country would you invest your $1 million if you are 100% certain that your forecast will come true? What total amount (in dollars) would you obtain at the end of 180 days? Show the necessary calculations. ...
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...factors that provide the foreign investors to invest their money to real estate in New York City? Thesis: Diversification, big amount of money, exchange rate and quality of life are factors that influence foreigners to invest in real estate in New York City Abstract: With the economic crisis in the U.S., Americans are worried about investing in real estate while foreign investors feel the U.S. real estate market is very enthusiastic especially in New York City. According to an annual survey taken by the Association of Foreign Investors in Real Estate (AFIRE), the U.S. rose to the top of the real estate market world. AFIRE members hold more than $627 billion of global real estate, including $265 billion in the U.S. About 72 percent of the respondents planned to invest more money in the United States in 2011. Based on the foreign investors in real estate in the U.S., the research evaluated the factors that influence the foreign investment in U.S. real estate. Outline of the Paper 1. Introduction 2. Foreign Investors Taxation 3. When to Invest in Real Estate 4. Factors that Influence Investing in Real Estate in New York City * Big Amount of Money * Diversification * Exchange Rate * Quality of Life 5. Conclusion 6. List of References Introduction When the economy goes down, many people avoid investing in business especially investing in real estate. This is because when investing in real estate, investors have to take a high risk and...
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...Which country had the most direct foreign investments in the United States over the last five years? Why? The United States of America, as one of the world most important economies, has always experienced tremendous amounts of Foreign Direct Investment within different sectors its economy. European nations have historically fueled America’s growth in the past with a variety of foreign Investments. According to the most recent reports disclosed, as of 2011 the largest direct foreign investor in the United States in the past five years is the United Kingdom with $454 billion dollars of investments (Jackson). Likewise the United States is the largest direct foreign investors in the United Kingdom with $421 billion of investments (Jackson). If a company from the United Kingdom purchases 15 percent or more of a US company it is considered foreign controlled. Foreign Direct investment is defined as physical investment into a country from a foreign entity. It can also be defined as a larger-scale, long-term investment outside the investor’s domestic economy. This is apposed to indirect foreign investment that is solely a provider of capital and the investing company has no share in the loss or gain of the company. Indirect investment is an investment in intangible assets, such as securities. The reason for Foreign Direct Investment is The U.S has projects in need of capital .The large influx of capital given to the US by other countries allows...
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...for example. When a nation known for its great markets and business opportunities starts to slow down, investors then need to look outside of the US and that is why these frontier markets are a great opportunity. With proven growth as well as recognizing the amount of natural resources available, these frontier markets will continually be sought out by investors. Add in the low cost of labor and you realize that these places are capable of being great opportunities for businesses around the world. Africa for example is a continent with many countries and if these markets are taken advantage of, investors can expect above average returns. However, frontier markets aren’t all positive. While the strengths of the possibilities of investing in these frontier markets is great, there are still many weaknesses that lie within these nations. Some of the main weaknesses include unstable economies, political systems and social outlooks. These types of things need to be monitored carefully before approaching frontier markets. With plenty of natural resources, the opportunity is there but it could be a roller coaster ride based on what is going on within the country. Another weakness is that there aren’t enough skilled personnel in these countries as the education isn’t as strong as in the US for example. If experienced men and women are brought in to train the people in these countries then it would be a good way to bring knowledge and build the skills necessary for these markets to succeed...
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...the international market is, according to David. L. Scott and almost all dictionaries “a type of foreign bond issued and traded in countries other than the one in which the bond is denominated.” This paper is going to focused on this particular bond issued by a particular issuer: The Eurobonds issued by Government. Why do governments issue such an instrument and why investors are more willing to buy it? It would remind, first the history of Eurobonds and why do the Governments are issuing those bonds , and then try to understand why do investors are interested in this type of bond, to reach the idea that there may have some boundaries to it. I The best way to introduce the subject might be by retracing it History in a Governmental point of view: After a slow start, the Eurobond market has grown to become a major force in the international securities markets, in part due to their tax-free status and ease of trading. Eurobonds is a market for big issuers; large institutional clients, big life insurance, and Governments Claes, A, (2002, p.378), Anatomy of the Eurobond Market 1980–2000. According to these figures, Governments are the number three using such a bond, that’s why it could be interesting to know, why they use it and what are the other ways they have to find funds. Governments need to borrow money to make their countries work. Of course this is not the first way for them to...
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...been an important component in the growth of China, particularly in industry. Joint ventures in China produce advantages for the partners. China is the world’s largest and most rapidly growing developing country, it is very important to learn the advantages of Joint ventures in China. I will discuss two types of Joint Ventures and how to establish Joint Ventures (JV). Joint ventures include Equity Joint Ventures (EJV) and Contractual Joint Ventures (CJV). Then, I will introduce why foreign investors should invest in China. There are three reasons for this. And in the end, I will emphasize the advantages of joint ventures in China. There are five advantages about it, which all create benefits for partners. So China is a worthy nation to invest. Keywords: advantages, joint ventures, China, partners, invest, investment Outline Thesis： Joint ventures in China produce advantages for the partners. Because China is the world’s largest and most rapidly growing developing country, it is very important to learn the advantages of Joint ventures in China. I. Background about the development of joint ventures in China II. Two types of joint ventures A. Equity Joint Ventures (EJV) B. Contractual Joint Ventures (CJV) III. Why invest in China A. Globalization B. Huge market and population C. Improved investment environment IV. Advantages A. The safest, easiest...
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...to others instruments. As a result of lower risk and relatively liquid instrument, thus money market instruments get a lower return compared to others investment. Money markets also called as cash investment. Bond is a long-term debt instruments which is more than one year maturities with the purpose of lend money for raising capital at specific period at fixed interest rate. Bonds are usually used by companies or government to finance a different type of activities and project. The risk level of bond instrument is considered lower risk than common shares. However, if an investor investing in junk bonds can be very risky to investor. The return of bond instrument have divided into two components which are yield-to-maturity and coupon. The yield-to-maturity is the average annual rates of returns to investor if the investor holds the bonds until maturity. The coupon is the annual interest receive by the investor each year up to maturity. Some bond like zero coupon bond can be redeemed at the full face value when it reach the maturity date...
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...You have the opportunity to start a business based on UEA campus-what business will you start? Student number: 100072753 Submission date: 10/11/2014 Word account: 2000 1 Contents Cover sheet Contents ............................................................... 1 .................................................................... 2 Executive summary ................................................. 3 Introduction ............................................................. 4 Main body ……...................................................... 4 Conclusion and Recommendations ............................8 Bibliography .....................................................................9 2 Executive summary This report was described what business will you start based on UEA campus. This report shows that the store on UEA campus has several serious deficiencies affecting its development, but has some opportunities to develop to make up for the weaknesses. And the school shop in performance of the advantages and disadvantages, should pay attention to the issue of risk. Based on analysis, and the strength of the school shop, the report recommends: the relationship with the school shop and 4ps, and focus on the need of consumers. Following these recommendations, the school shop can be respected in school as well as more spare for development. To illustrate the store opened should be paid attention to in the...
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...In this paper I will provide an overview of why gold is a good investment choice. I will give an analysis of gold’s current and historical prices, why an investor should invest in gold, and the wide range of options that are available to an investor that chooses to invest in gold. Gold is recognized worldwide as a true form of currency. It has a universal store of value; it can function as a hedge against inflation, protection against the declining value of the dollar and is a good option to sustain wealth in the declining financial market. Gold is a currency that option and is desired by many people, easy dividable, scarce, and durable. Gold had an intrinsic value before it became money and that is the foundation of its worth. Gold has increased in price over the last decade by 500%. In the increase in price is attributed to the drop in the value of the dollar and the expectation that inflation will rise to above average levels. Gold was valued at $900 an ounce in April 2008, $1,888.70 in August 2011 and as of July 25, 2012 it was valued at $1,608 an ounce. Through March 2012 the spot price of gold returned of 18.5 percent, while the S&P 500 has had a return of only 4.11 percent. The chart below shows the increase in gold prices for the last ten years and gold’s performance price for the last 30 days, six months, one year, and the last five years. 10 year gold price history in US Dollars per ounce. http://goldprice.org/gold-price-history.html http://goldprice...
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