Home » Global Investments: 4 Pros and Cons of Investing in Other Countries

Global Investments: 4 Pros and Cons of Investing in Other Countries

If you’re thinking of investing overseas, you’re not alone. It’s no secret the U.S. is facing economic issues and the markets here are considered unstable to many. Surprisingly, investment brokers are suggesting portfolios should include global investments. Here are four countries to consider along with the pros and cons of each.

1. Nigeria: Rich in Natural Minerals and Agriculture

There are advantages and disadvantages if you want to invest in either of these African countries. Proponents suggest Nigeria’s GNP will grow 40 percent in 2013, but is that a reliable number?

Pros – Financial analysts say the focus in Africa, even in smaller regions like Nigeria is minerals and agriculture. In addition, wages compared to the U.S. are substantially lower. African leaders are also strongly committed to growing their infrastructure and with a stronger way to get goods where they need to go, investment opportunities do seem prudent in Nigeria.

Cons – Some financial analysts fear certain countries like Nigeria may be overstating their GNP predictions deliberately to engage investors. Further, many areas of Africa—even those in the manufacturing tech game are fighting for resources and organized crime is a very real problem in these two countries.

2. Mexico: Low Costs to Manufacture Goods

For quite some time, Mexico has been a favorite of auto manufacturers due to lower wages but what are the pros and cons for investing in this country?

Pros – China’s costs to manufacture are rising, opening the door for the more affordable Mexico workforce. New President Enrique Pena Nieto has rewritten labor and education reform meaning more qualified workers for technology production. Mexico has also out-performed the U.S. by six percentage points in the manufacturing field and Mexico’s energy reform policies appear to be stronger than those in the U.S.

Cons – Many parts of Mexico are still involved in the illegal drug trade so much like Africa, crime and the leaders behind it are hard to control. In addition, the Mexican government only utilizes ten percent of the GNP to operate and that could mean government weak areas making economic conditions turn sour quickly.

3. South Africa: Rise Force in the Telecom Industry

South Africa is also growing in manufacturing and two biggies are the telecom industry and African breweries. Still, again there is the good and the bad to consider before investing.

Pros – U.S. News and World Report says “10 percent of the world’s oil reserves and 40 percent of the world’s proven gold reserves are found in Africa.” Beyond that, South Africa has the kindest real estate deed laws so building and land investments are just one area boosting this country’s economy.

Cons –  Common problems in South Africa still remain a reason to give pause before making large investments. Poverty is abundant alongside major profitable cities,  the government remains unstable in its ability to deal with major crime issues and this country has the highest HIV/AIDS numbers resulting in over 310,000 deaths annually.

4. New Zealand: Home of Exponential Industrial Growth

Analysts are very happy with New Zealand’s growth; there still are pros and cons, however.

Pros – New Zealand is fond of investor protection. Agricultural exports are on the rise and both real estate and technology are also popular fields here. New Zealand’s workforce is perhaps the world’s happiest and when businesses can engage employees, production and output are affected positively.

Cons – With all the good reasons to invest in this country, it remains high in crime, especially drug-related crimes, racism and theft.

Making global investments in any economy means choosing financial advisors such as Fisher Investments. It may indeed be time to expand your portfolio globally so seek out the address for Fisher Investments and obtain their expert advice before your investment dollars go global.

Peter Christopher

Back to top