The decline in U.S. manufacturing isn't just about labor costs. A crucial, overlooked factor is the disparity in savings. While Americans consumed, nations like China saved and invested in capital goods like factories, making their labor more productive and thus more attractive for manufacturing investment.

Contrary to models where capital should flow to high-growth developing countries, it moves from these nations to rich, 'investor-friendly' ones like the US and UK. These developed economies run trade deficits while developing ones become net lenders, an inversion of the expected global financial order.

Aliko Dangote argues that emerging markets mistakenly chase foreign capital. The key is for domestic investors to first show confidence by reinvesting heavily in their own economies. This local commitment is the most powerful signal that attracts and de-risks opportunities for foreign investors.

Typically, a weaker US dollar helps developing countries by reducing their debt burden. However, the trade war that weakened the dollar also increased the risk premium on these nations, causing their actual borrowing costs to rise—an unusual and detrimental economic outcome.

Western investors visiting emerging markets often invest in businesses they personally enjoy in affluent areas. This is a critical error, as these ventures aren't scalable to the broader local population with a much lower average income. The real opportunity lies in the mass market.

To thrive economically, a nation should pursue two seemingly contradictory paths simultaneously. Domestically, it should deregulate to foster innovation and become an attractive place to build. Internationally, it must use interventionist policies like tariffs to protect its industries from countries that do not operate on free-market principles.

The International Monetary Fund isn't just a lender of last resort for countries in crisis. A core, often overlooked, function is proactive: preventing crises by providing data, building strong financial institutions, and offering preventative financial support before markets close on a country.

China deliberately maintains an undervalued renminbi to make its exports cheaper globally. This strategy props up its manufacturing-led growth model, even though it hinders economic rebalancing and reduces the purchasing power of its own citizens.

When countries run large, structural government deficits, their policy options become limited. Historically, this state of 'fiscal dominance' leads to the implementation of capital controls and other financial frictions to prevent capital flight and manage the currency, increasing risks for investors.