Wednesday, June 24, 2009

Difference between first world and 3rd world countries.

If you observe closely first world countries depends on borrowing or has cash flow inhouse. Where else 3rd world countries depends on foreign direct investment. This is because 3 world country bonds rating is lower.

Currently with recession 3rd world countries will face more difficulties to overcome it. But when the recession is over the inflation rate of 3rd world countries compared to the first world countries. This is because there is no excess cash flow in the 3rd world countries.

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