Q1 ) The industrialized countries are at the forefront of all the economic transactions in the international scale . However , due to the initiatives of making the world a single market by establishing globalization , it can be seen that the capitals of the industrialized developed countries are starting to leak out of the parameters of their own developed markets . Many of the capitalists in the developed nations are now considering investing in less developed or developing countries .This condition may be attributed to the fact that emerging markets provide more attractive environments for investments therefore providing greater profit margins . Due to the lower costs of establishing industrial facilities , improved political climates , cheaper labor costs and high quality raw materials , the capitals of the industrialized countries are now extensively allocated to less developed nations . Even though the United States is still a favorite market of foreign investors , the global investment allocation in developing countries had the fastest growth of 21 in 2006 (Associated Press , 2007 . The most significant example of this scenario is the increasing number of contact centers outside the US , outsourcing and off-shoring and the relocation of factories from home headquarters to developing nations .Q2 ) The distinction between a less-developed economy and an emerging market can be considered the two extreme ends of country groupings (with developing nations at the middle ) outside of the industrialized segments . Basically , less developed nations have the characteristics of having poor infrastructure , low per capita income and a somehow unstable political and economic development . On the other hand , emerging markets have the characteristics more advanced than less-developed nations but have not fully achieved the status of industrialization . These countries have more attractive investment climates and can partially compete with the economic transactions of industrialized nations . Some of the emerging countries considered are China , India , Brazil , Mexico and South Africa which represent two-third of the world ‘s population (Deutsche Welle , 2007 .References Associated Press . 2007 . Investment in developing countries soared in 2006 . International Herald Tribune . Retrieved April 3 , 2008 from http /www .iht .com /articles /2007 /10 /16 /business /fdi .php .Deutsche Welle . 2007 . Emerging Nations Visit the “Rich Country Club ” — the G8 . DW-World . Retrieved April 3 , 2008 from http /www .dw-world .de /dw /article /0 ,2144 ,2577117 ,00 .html…