Abstract

Purpose - The financial crisis has led to a number of important trends. This article sets out to examine the capabilities of both emerging markets and developed economies to come back from the current economic slowdown. It will draw on both trade and growth theories and uses relevant data to support the main arguments. Evidence suggests that the recovery will be slow and both emerging and developed countries will experience slower growth than the previous decade. Design/methodology/approach - The paper makes use of secondary data on future economic trends. It also draws on data and theory from international trade and foreign direct investment to support the future projected scenarios. Findings - The paper provides evidence on country data and comparisons between the main trading nations. The paper also draws on current macroeconomic data to support the main future predictions. Originality/value - The paper is useful for both academics and business practitioners and relates to the strategic decisions that have to be taken by Politicians and the business community. Copyright © 2011 Emerald Group Publishing Limited. All rights reserved.