It is a fact that rapidly developing economies (RDEs) have increasingly become drivers of change -- and sometimes disruption -- in global financial markets. That has important implications for companies in the United States and Europe as new players emerge, including sovereign wealth funds, state-controlled entities and acquisition-minded corporations. As these groups bolster their foreign exchange reserves, they will increasingly look to buy assets beyond their borders, including controlling stakes in foreign companies. At the same time, aging populations in the United States and in Europe will be seeking to liquidate some assets to finance their retirements. This combination of trends will present both opportunities and threats for companies in the developed world. Companies that do not run a tight ship could see unsolicited takeover bids from companies in countries with merchandise- or energy-related trade surpluses. Additionally, top executives at Western companies will need to understand sovereign funds' investment criteria and even get to know decision makers personally.Seeds for this change date in part back to the Asian financial crisis of 1997 and 1998. Back then the International Monetary Fund got many countries in Asia to do drastic things in exchange for loans. Most decided they never wanted to undergo such economic austerity agai...
More...




0 comments ↓