Long dependent on finicky foreign capital to stimulate growth, emerging markets have often collapsed when capital left.
The cost will be lower foreign capital inflow and slower growth, but greater stability should result.
Some economists are expecting wider fluctuation of the exchange rate due to uncertain foreign capital flow.
Some of China's most successful companies, including NetEase and Baidu, received foreign capital this way.
Such countries are most exposed in a credit drought, as they rely on foreign capital.
The move by China was an effort to get more foreign capital flowing into China.
The problem for Spain is that foreign capital has been fleeing over the past year.
But neither of these factors has so far proved much of a deterrent to foreign capital.
Foreign capital has enabled many papers to modernise their production processes, improving print quality and layout.
With sustainable growth rates much higher in China, the U.S. has recently fallen behind it in attracting foreign capital.
The oil shock has also exposed another long-standing vulnerability: Mexico's dependence on fickle foreign capital.
It also needs foreign capital and expertise to help its state-owned firms pull it off.
After all, before the Crisis those who ran Indonesia gorged at tables heaped with private foreign capital.
Investment in property accounted for more than 60% of total registered foreign capital in Vietnam last year.
But with output declining, Pemex hopes to find some way to bring in foreign capital and expertise.
If President Obama wants to get serious about jobs, he needs to get serious about attracting foreign capital.
The hitch is that, because of India's controls on foreign capital, all contracts must be denominated in rupees.
The foreign capital that flowed into Latin America in the past year has been hoarded rather than spent.
Why open the gates to foreign capital, only to invite excesses that will cause pain and disappointment later?
This year foreign capital has gone into reverse at the same time as India's current-account deficit has widened sharply.
Since the oil price fell, fewer and fewer economic activities are receiving the foreign capital they need to operate.
America, in turn, has been overly reliant on foreign capital inflows, so as to finance its record current-account deficit.
Thanks in part to rock-bottom interest rates in the rich world, foreign capital is flooding back into emerging economies.
These include that worsening budget outlook and America's rising reliance on foreign capital.
These could also help attract foreign capital and narrow the country's current-account gap.
Thats because their central banks didnt mop up huge inflows of foreign capital.
In this way the fear of foreign capital may be a bigger economic danger than the foreign capital itself.
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But the inflow of foreign capital would put upward pressure on the rupee.
It has no prospect of attracting private foreign capital in the near future.
India has been looking to attract more long-term foreign capital to lift economic growth from a decade low of 5%.
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