Emerging Markets Grow in Importance
Despite the economic turbulence in Asia and other emerging markets in the late 1990s, these economies remain important to U.S. firms. Liberalization and the increased flow of information have led emerging markets to pursue more market-oriented economic policies. Indeed, the private sector financed nearly $580 billion of infrastructure improvements in these countries during the 1990s.
The U.S. securities industry provides Multinational companies with a major competitive resource overseas in obtaining funds at the lowest cost. In turn, these foreign markets help U.S. financial firms expand revenues and profitability.