101 Trends Every Investor Should Know About the Global Economy

"Whether measured at market exchange rates or at purchasing power parity rates, global output has steadily expanded over the past decades."

"The relative strength of the developing nations has been underpinned by a number of factors, including rising per-capita incomes and the steady rise and formation of a middle class in many countries."

"In general, the coastal provinces and cities have been more outward-looking and outward-oriented and have therefore enjoyed faster rates of growth and income relative to the provinces in the interior."

"Numerous variables have converged over the past decade to boost trade, including greater trade liberalization in the developing nations and lower transportation and telecommunications costs."

"With their massive infrastructure needs, burgeoning middle classes, and more open and receptive trade and investment regimes, the developing nations represent something of a new frontier for many companies in the United States, Europe and Japan."

"More than 100 regional trading blocs exist today, and the number continues to fluctuate, given that new agreements are being created, existing arrangements are being extended, and old groupings are being merged."

"By expanding at a faster pace than either world output or world trade, foreign direct investment has moved to the forefront as one of the more powerful variables of the world economy."

"Despite the ebb and flow of foreign direct investment and shift in exchange rates, the general global thrust of Japan has not changed. Investment-led growth overseas is the preferred strategy of large and medium-sized companies."

"One of the most significant trends of the world economy . . . is that aggregate capital flows to the developing nations are now overwhelmingly from the private sector."

"Investors' on-again, off-again love affair with the emerging markets is likely to characterize portfolio flows to the developing nations over the medium-term."

"Countries, like individuals, must invest in themselves, or they run the long-term risk of falling living standards, declining global competitiveness, and decreasing levels of economic growth."

"The greatest challenge on the job front lies in Europe, where the structural rate of unemployment has continued to ratchet up from cycle to cycle."

"Like many other global industries in which product life cycles have shortened and capital investment costs have increased, international alliances among semiconductor companies have become the norm."

"In the rush to build new plants in Mexico, Brazil, Poland, China, and Thailand, a mountain of excess capacity is emerging."

"Global customers constitute new markets for fast food, entertainment, consumer staples, and a host of other products and services, ranging from computer software to footwear."