An Investor's Thoughts About Asia Investment Options

Although there have been many factors which have driven East Asia's expansion, the rise in investment, both domestic and foreign; has played an extremely important role. In fact, emerging economies in East Asia accounted for 43 percent of all foreign direct investment in developing areas (globally) last year, indicating that the region has become a very popular destination of choice; for many foreign private investors.

Although there are many benefits to investing in Asia, especially if you are someone who likes investing in vision and experience, the countries in that area are not immune to; their own growing list of troubles. Consider this ... If there were to be an economic slowdown in China, which comprises 80% of developing East Asia's GDP, it would significantly damage the region's prospects. On the other hand, some analysts also believe that if the slowdown in China was a gradual one, then it might in fact be beneficial for the other economies of East Asia.

"With China consuming less, commodity prices would drop, putting a cap on inflation and freeing up money for development projects and spending," says Ruchir Sharma, managing director of Morgan Stanley and the author of Breakout Nations. Mr. Sharma adds that, with manufacturing costs also rising in China, other nations may be able to start ramping up their own manufacturing operations.

"As costs in China go up, manufacturing could be moving more to places such as Indonesia, Philippines and Thailand,"- Ruchir Sharma, Managing Director of Morgan Stanley.

This regional shift in manufacturing, would most likely be accompanied by a sharp increase in great investment opportunities and job creation, which in turn; would create a steady rise in demand and encourage consumer spending.