ABSTRACT
Globalization has deeply transformed the world’s economy, its structure and the dynamic of doing business. The critical economic influence that the United States traditionally exerted has significantly decreased over the last few decades as several of other developed countries have increased their economic power and, most importantly, emerging economies have become key economic players. In Asia, where many of these emerging economies are located, China and India have a population of almost 2.6 billion, representing 37 percent of the world population. These emerging economies have become critical players in the world, with economies that are growing very quickly and serving as preferred destinations for businesses for relocation or outsourcing. According to the World Bank, the GDP per capita (nominal) of China has grown from US$314 in 1990 to US$6,091 in 2012, while in India the GDP per capita (nominal) has grown from US$376 in 1990 to US$1,489 in 2012. Also in China the number of people living in extreme poverty (with less than US$l/day) has decreased from 375 million people in 1990 to 212 million in 2001. In India, Pakistan and Bangladesh the number of people living in extreme poverty has decreased from 462 million in 1990 to 431 million in 2001, and will be 216 million in 2015 if the trend doesn’t change. These numbers reflect the growing market potential of these economies. South Korea has become one of the world leaders in automotive and telecommunications industries, while Singapore has made its reputation as the financial center of South Asia. These two countries are among the 20 largest economies of the world. They host the headquarters of many important multinational corporations and their business climate has remained attractive. In Latin America, Brazil has become a serious competitor for many US multinational corporations, and the business environment has kept improving. The African continent, the one that is still lagging behind in the era of globalization, has started its economic transformation and is preparing for its turn in the "economic gold rush.” With a population of more than one billion people with a low average age, an ongoing improvement of the business environment and tremendous natural resources, Africa has enormous potential to attract foreign investments. For instance, South Africa is a powerful country with many features of economically advanced countries. It has a very good business climate and there is a strong entrepreneurial mentality. It has significant mining resources and the necessary infrastructure to attract foreign direct investments. Nigeria, the most populous country in Africa, with more than 162 million people, is also one of the important oil producers in the world and this can contribute to the development of competitive advantages for investors whose business activities require high energy consumption. Its manufacturing sector is one of the most dynamic of developing countries. In Angola, the economic boom of oil business has transformed the country into a preferred destination of foreign direct investments and attracts many European job seekers, who bring their European expertise. Egypt, with 83 million people, is among the African countries that can easily offer cheap labor to foreign investors, as has been the case in China and India. It’s not surprising to see the increasing investments from Chinese companies almost everywhere in Africa.
