Sources of Finance for Business in Developing Economies Case Study by write123

Sources of Finance for Business in Developing Economies
An in depth review of the sources of finance in a developing economy.
# 105395 | 9,548 words | 9 sources | APA | 2008 | US

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The paper points out that businesses in developing countries are prospering, but they are dependant on foreign direct investment (FDI). The paper then goes on to criticize the FDI in that it directs its efforts mainly towards large businesses and as a result the small facilities lose out, instead of it benefiting them and their economies. Next, the paper discusess a case study of Africa to demonstrate how to determine whether a business should move into a particular country or whether a company should attempt financing to grow and expand in a particular country. The paper uses Sub-Saharan Africa to show how this should be done and everything that should be known about a place.

Foreign Direct Investment
The Growth of Third World Countries
Case Study - Africa

From the Paper:

"Foreign direct investment has been around for some time, and it is important to understand this. More recently, however, FDI has moved into many more countries - quite a few of which are still developing, and many of which have a multitude of small businesses, such as those found in many villages and small towns in Africa. Those that have invested in already developed countries in the past have, in general, done well with these investments, because the economies of these countries are growing so strongly. However, those that invest in developing countries are also doing well, but in a more long-term way. When someone, or some business, invests in a country that is still developing, there is no great expectation of immediate wealth. Many of these countries do not have a lot of money, and their economies are troubled and sluggish to some extent. Since the economies of these countries are slow to perform, the businesses that are in these countries have the same problems."

Sample of Sources Used:

  • Abreu, MP. (1990). Developing Countries and the Uruguay Round of Trade Negotiations. Proceedings of the Worm Bank Annual Conference on Development Economics 1989: 21-57.
  • Agosin, MR., Tussie, D. & Crespi, G. (1995). Developing Countries and the Uruguay Round: An Evaluation and Issues for the Future. In International Monetary and Financial Issues for the 1990s: Research Papers for the Group of Twenty-Four, vol. VI. New York: United Nations.
  • Baldwin, RE. (1995). An Economic Evaluation of the Uruguay Round Agreements. The World Economy 18 supplement: 153-172.
  • Baughman, L, Mirus, R., Morkre, ME, & Spinanger, D. (1997). Of Tyre Cords, Ties and Tents: Window Dressing in the ATC? The World Economy 20 (July): 407-434.
  • Bhagwati, JN. (1987). Trade in Services and the Multilateral Trade Negotiations. The World Bank Economic Review 1 (September): 549-569.

Cite this Case Study:

APA Format

Sources of Finance for Business in Developing Economies (2008, July 07) Retrieved July 05, 2022, from

MLA Format

"Sources of Finance for Business in Developing Economies" 07 July 2008. Web. 05 July. 2022. <>