It is commonly said and believed that there are countries where investors can invest and others where they cannot. Many investors today are paranoid about investing in some countries. And nothing on earth will make them invest in some countries outside of their own. Unfortunately, investment environments are becoming increasingly complicated, dangerous, and competitive, requiring investors to expand their onshore investment networks if they are to remain liquid and avoid starving.
This is all the more true in the context of the global financial crisis, which has shown that no country, regardless of its level of development, is immune to an economic and investment collapse. In previous conservative investment environments, the dominant view was that some nations are nearly immune to failure because of their mature investment culture, transparency, stakeholder honesty, and strict regulations that guarantee returns. In this context, investments in Africa, Asia, and Latin America, for example, are not readily accepted, given the general investment climate and political environment.
Unfortunately, the data and experiences now suggest that these are emerging markets and have excellent prospects for future investments, regardless of the assets in question. The cases of Brazil, India, and China have somewhat illustrated this point. Below are some things investors should ensure when investing in any country/environment, regardless of the level of development of those countries/states/cities and even cities.
The investor must critically examine the highest yield investment location. The study is not just about professional proofs of concept, which will be full of jargon too familiar to fail. The study should be both professional and rudimentary, and investors and their representatives should take to the streets to question/study ordinary people about the investment dynamics in their countries. Critical government, industry, and political stakeholders must also be engaged informally.
Investors need to rid themselves of stereotypes and prejudices about where to invest. Many prejudices and stereotypes about some places have been spread in the investment sectors, and these do not make some investors invest in those places. Investors should be patient and calculate when they are about to invest in new areas.
Many are rushing to invest in new places due to the impact of the train. Deals in town. Not because they have weighed paths involving professional details, sociocultural factors, and other informal forces. Bad.Not that they’re in any hurry to sell the investment after a little scare or failure.