International Business in the Emerging Markets Essay

International Business in the Emerging Markets - Essay ExampleThe magnitude of this flow of capital is momentous, and although there are well-defined reasons for this snub it has caught many by surprise. The increase in FDI investment has mostly been in East Asia and the Pacific, Latin the States and the Caribbean, regions of Europe, and Central Asia. This means Africa and other parts of the world did not receive much in hurt of FDI. The effect this has on the poorer nation is that it keeps their currency low and the amount of available jobs are low as well as the economy being flat. The effect on the countries that receive investments are a high foreign exchange reserve, more jobs, and a high GDP. (2) mainland Chinas energy policy and its squeeze on developing countries in Africa and Asia. China is now the greatest energy consuming country in the world, surpassing the US based on the IEA (International Energy Agency) findings. Although Chinese officials dispute that the countr y is responsible for 2.25 cardinal tons of energy usance, the country did admit to stockpiling oil when there is a lull in purchasing. China is excessively the leading bollix emitter so it makes sense that China would be the largest consumer of energy. Also China spends the most amount of money on green technology. China has much(prenominal) a desire to omit the oil market that is has gone against sanctions in order to invest in Iran. This means that not precisely are the Chinese going against what the world is trying to accomplish but also are fortify the Iranian mindset of misinformation. Due to the fact that Chinese officials focus on controlling demand of gas by emphasizing price impacts the developing countries like Africa and Asia because the prices in these two countries are much higher than what would be in China. Why? Well first of all purchasing from Iran would lower prices but also being a major buyer in the market can allow for more insistency on the market. In Africa there is little pressure on the market for energy and Asia outside of Chinas consumption has a much lower energy demand. By cornering the market with the U.S, China is essentially decreasing the likelihood that Asia and Africa will ever be able to afford the energy costs. Even if these countries can afford it, are the citizens willing to pay for this consistently, or will they tire of high energy prices? The effect on Africa and or so parts of Asia will be a lack of the supply of energy and therefore power outages, inability to drive cars, and issues of this nature. As a NY Times article states Power blackouts load shedding, in utility patois are hardly novel in sub-Saharan Africa, where many electricity grids remain chewing-gum-and-baling-wire affairs. Even so, this division is different. Perhaps 25 of the 44 sub-Saharan nations face crippling electricity shortages, a power crisis that some experts call unprecedented. The causes are manifold strong economic growth in some places, economic split in others, war, poor planning, population booms, high oil prices and drought have combined to leave some(prenominal) industry and residents short of power when many need it most. These outages can be crippling for small businesses such as farms, and production companies. Factories would have to build another day and the company loses because they are unable to equate their obligations. (3) The drivers of globalization amid the current financial crisis. Before we can talk about globalization we must