And the same respect for creditor rights that reassures domestic investors reassures foreign investors both official and private as well.

Indeed, sufficient official financing will be needed to allow cross border and even domestic investors to exit.

Foreign direct investment flows have generally been influenced by policies that do not discriminate between foreign and domestic investors.

The losses incurred by domestic investors can have a long term effect on the pension system or the banking sector.

Breaking this logjam will be important, both in itself and for the message that it conveys to domestic and foreign investors.

At the same time, the qualified foreign institutional investors (QFII) scheme allowed licensed foreign entities to invest in domestic capital markets.

The surge in the stock market benefits domestic investors, making them likelier to spend more (what economists call the wealth effect ).

Its bond markets remain small, and trading volume is low, because the majority of bonds are held to maturity by domestic investors.

Given its extraordinary shortfall of domestic saving, the US runs chronic current account deficits and relies on foreign investors to fill the funding void.

Moreover, for too many investors, Portugal, with its poor growth prospects and insufficient domestic savings to fund the public sector deficit, looks like Greece.

These markets can become a strong source of financing for longer term domestic investment, including in infrastructure, thereby reducing currency risk for borrowers and investors.

However, while financial stringency proved attractive to foreign investors, a tight monetary and fiscal stance did little to stimulate domestic investment or to improve export prospects.

As sterilization induces issuance of domestic assets, global investors desire for diversification would be met without causing excessive currency appreciation, with all its collateral damage, in emerging markets.

Western entrepreneurs and investors have increasingly come to view Europe s east as a part of a (now broader) domestic market and have behaved with a longer term view.

In 2001, 72 of institutional investors and 74 of individual investors chose increase. By May 2007, only 48 of institutional investors and 59 of individual investors chose increase.

The Agreement on Trade Related Investment Measures (TRIMs) are rules that apply to the domestic regulations a country applies to foreign investors, often as part of an industrial policy.

Ivy League Investors

This does not seem to be the best way to bring about a true redistribution of income, but has been enough to achieve two objectives it keeps domestic and foreign investors satisfied.

Unwisely, Chen went out of his way to shut out mainland Chinese capital and to retain barriers to other foreign investors in order to protect the domestic businesses of his political allies.

For instance, if your infrastructure is bad, or you have domestic policies that prevent investors from responding to market opportunities (such as South Asia s stifling licensing restrictions), you will see no results.

These countries have opened their markets to foreign investors and foreign investors are responding eagerly.

Investors eventually do learn.

Many investors echo Soros.

Investors should take note.

Brazil under President Luiz Inácio Lula da Silva demonstrated how basic reforms can be implemented in the context of turmoil caused by a major domestic political transition, fleeing investors, and an inhospitable global context.

Currently, new investors' interest is picking up, and some investors established before 1998 have dramatically increased capacity.

(In the electoral campaign of 2002, both domestic and external investors who bet heavily against the Brazilian currency during the electoral campaign in 2002, for fear of Lula, a candidate who seemed to be radical.)

The only way that Greece could avoid a default would be by cutting its future annual budget deficits to a level that foreign and domestic investors would be willing to finance on a voluntary basis.

Are Foreign Investors Still Welcome?

A TMG official reassures investors

Critics of Bachelet claim that this agenda is already depressing business investment and is responsible for relatively slow economic growth. And they worry that foreign and domestic investors will be discouraged by the new labor rules.

The authorities also introduced the qualified domestic institutional investors (QDII) program to enable residents to invest in foreign assets one of many initiatives aimed at easing upward pressure on the renminbi s exchange rate by encouraging capital outflows.

Other Turkish investors express similar complaints.

This should give confidence to investors.

Investors take all kinds of risks.

Other Turkish investors express similar complaints.

But enlightened companies require enlightened investors.

The expected one year increase in the Dow in 2005 averages 4.8 for institutional investors and 4.3 for individual investors.

Indeed, by clarifying through domestic legislation the protections offered to investors, South Africa is once again demonstrating as it has repeatedly done since the adoption of its new Constitution in 1996 its commitment to the rule of law.

Essentially, by buying long term Treasury bonds from private investors portfolios, the Fed hopes that these investors will rebalance their portfolios.

Therefore, Governments would increasingly have to defend their investors' interests abroad while protecting themselves against claims filed by foreign investors domestically.

So, again, who will those investors be?

Consider investors in Fannie and Freddie bonds.

Investors, of course, are hedging their bets.

Chinese investors are worried about inflationary overheating.