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But it’s not just politics that makes offshore investing risky without proper foresight. If
American dollar gets stronger against
country you’ve invested in, your investments will suddenly be worth less. You should look at
country’s economic infrastructure, assure yourself that it’s in pretty good shape, and only then make a decision.
Despite all
pitfalls, there is also some serious money to be made with offshore investing. For instance, because of cheaper labor, an Indian engineer or software designer’s employment costs are about 40% those of an equivalently-skilled American engineer or designer. And companies that run offshore are better suited to take advantage of
rising demands of emerging economies; they’re there, they understand
people, and they are already recognized.
Investing offshore often can make a real impact on
lives of other people. Bringing investment capital to a third-world country gives it a sudden injection of cash, of employment for people who want to work, and of secondary businesses that spring up to supply
offshore business as well as its employees. Sometimes this jumpstart is all an economy needs to start emerging. Not only is investing overseas a great way to grow your money (albeit risky), but when done properly it also benefits people who you will never meet, but who will be grateful to you forever for just giving them a chance.

Jakob Jelling is the founder of http://www.cashbazar.com. Please visit his financial website to learn more about investing.