The Currency of Kenya Essay Example | Topics and Well Written Essays - 750 words

The Currency of Kenya - Essay Example An emerging market is those countries that have their cost of labor, either direct or indirect, low as compared to other countries cost of labor. This means that emerging markets have cheaper labor compared to wealthier nations. The wealthier nations have their labor cost high; hence investment in the wealthier countries is expensive. When wealthier nation invests in the emerging market, they spend less in their expense on the labor. They move fast to take advantage of the readily available cheaper source of labor. They invest in these emerging markets, capitalizing on their profits because they will spend a little amount of foreign currency on the labor. The emerging markets provide cheaper readily available labor, hence wealthier nations move quickly and invest in the emerging markets (Commission). The currency of Kenya exists as Kenyan shilling. Kenya offers to investment opportunities to the US government. Kenyan economy is moving to an open economy from a closed one. This ensures a stronger and a more stable economic prowess. An Exchange reform ensures a stable economy. When the US invests in Kenya, the Kenyan Shilling will be stable hence growing the economy to a greater height, hence attracting more investment. Sound political and economic environments attract investors. Foreign donations by the World Bank, IMF, and other world organization increase the confidence of other nations investing in Kenya (Commission). The spread return: this is the total amount the investor is expecting to get a profit from the investment. Investors risks by investing in foreign countries. Investors will invest more in a country when they ascertain more returns than when they invest in their country.