Is capital movement from Industrialized to less developed and emerging markets?

Question

Is capital movement from Industrialized to less developed and emerging markets?

Answer 1

capital movement is to where the roi is the greatest generally speaking.  That can indeed mean that it will tend to move to developing economies from developed economies.  I saw an interview tonight with the person in charge of developing the market for McDonalds Restaurants in China.  They are building over 100 a year there.  Get the picture?

Answer 2

Capital movement is the transfer of resources to another area. It generally does refer now to the flow from developed countries to less developed ones (such as China, India, Brazil, Argentina, etc.etc.) but only because there is generally a tremendous amount of growth potential there. Capital movement could refer to one developed country to another, but generally now refers to the flow into less developed ones. I wrote an article which was published on SeekingAlpha about how Morgan Stanley predicts the biggest capital flows over the next 10 years is going to be in the realm of emerging markets building their infrastructure up (highways, ports, water, sanitation, etc.) because most lack those basic resources.

The article is here:

http://blog.emerginvest.com/?p=17

Hope this helps!