The reason for this curious question is simple: global expansion and investment routes are changing…Quickly!
The USA and EEC are diminishing as the dominant investors in Brazil and in other “Developing Economies”, and the new player list is not only China.
A New Era in international trade and investment routes is illustrated by this recently augmented list of countries from which ABACO received research requests and served clients in the last 12 months: Sure, the traditional global player nations remain, but no longer alone or dominant.
The real question is: “What countries now look outward for business growth, rather than dealing with internal strife?” Political divisiveness in the developed nations and a whole new definition of expansionism now shift the routes of global business and research.
See our new client origins on the map. The yellow squares show a trend:
Much New Expansion – at least to Brazil – is from Developing Nations themselves!
Countries with large populations and rapid growth are keen to partner or do FDI wherever they can source vital raw materials and also trade their own goods and services.
China now invests billions in infrastructure throughout South America and Africa. Why?To ensure supply and reduce costs to transport foodstuffs to feed its 1.4Bn mouths and raw materials for its 2MM+ low-cost factories.
Brazil signifies a unique opportunity for China and many other countries with serious limitations to internal growth: it has huge areas of arable land with sun and water, a labor force of 112MM and 210MM avid consumers.
Conclusion: If “Developed Nations” don’t raise their game in the next few years, they’ll find themselves at the tail end of global growth opportunities, behind the fast-growing and market-hungry Second and Third World.