ABSTRACT
This chapter explains investment institutions will usually insist that any project that they finance in the Global Emerging Market (GEM) be insured against political risk, the process of acquiring such insurance is much easier when insurance companies have a presence in the potential recipient country. Telecommunication infrastructure should be strategized first and foremost in terms of technological development of the environment for Foreign Direct Investment (FDI). The most practical and important use of information technology innovations is the development of e-commerce. In order to reduce technological risk for strategic FDI, it is important for emerging market countries (EMCs) that are not technologically advanced to develop national strategies to stimulate investment in high-tech sectors and companies as well as the development of national educational programs. A certain level of protectionism is needed for countries to jumpstart their technological development.
