Question

This world is getting smaller day by day. With the globalized economic development, there is a strong emerging trend of global financial markets. The boundaries are vanishing, and the money are flowing. Beside of the developed part of the world, regions like east Europe, far east Asia, and Latin America are opening their markets and participating more actively through global financial transactions.

If you have the option available to invest globally, would you choose to purchase certain financial products which are closely related with the oversea emerging market? and Why? And in which foreign country you would prefer to do some investment?

Answer 1

The ETFs (Exchangeable Traded Funds) which deals with equities of emerging markets and Mutual funds investment in developing markets can be used as investment options.
The investments can be done because it can hedge against low returns or downturn in the domestic market. By investing in international portfolio helps in diversifying currency risk and since in developing countries the potential for growth in infrastructure and per capita income is huge. Hence the growth potential is huge

the preferred country is India because of its huge potential for growth and with GDP forecast of above 7% makes it very lucrative.