If you track currency exchange rates at all you know that the dollar is taking a beating worldwide. The housing crash and worried consumers are having a huge impact on the economy. There really seems to be no end in sight for these two negative trends. I would look at 2008 as another year where housing markets continue their downward trend and consumers really start feeling the pinch of their credit card debt.

All-in-all, 2008 could be a bad year for the United States' economy, but there are a few areas that may prove to be lucrative investments. One such area is investing in US based companies providing goods or services to international markets, especially in India or China.

China's economic growth does not appear to be slowing down; in fact, the CIA World Fact Book says that China, in 2006, was the second largest economy in the world. The China Daily web site said that by 2010 there will be nearly 100 million households in China meeting the "middle class" criterion. That equates to a 100 million household consumer market that can afford to buy higher-end products.

That market will want cell phones, iPods, homes, cars, clothes, Internet connections and everything else middle class America has. China will have to not only import products, but they will also have to build their infrastructure up to support the demands of their middle class. American investors would be smart to look for US based companies that provide the materials and expertise necessary to accommodate China's growth requirements.

India too, is a huge market, which according to CNNMoney.com has a $300 billion dollar consumer market. With the US dollar being weak it invites India's middle class buy up American products. Simple economics say that when a country's currency's value weakens the products and services from that country become cheaper. That means that more American products will be bought by that $300 billion dollar consumer market. Again, smart investors should research companies that can meet some of the demands of India's consumer market.

Between China and India, there are roughly 2.5 billion potential consumers waiting for products, services and basic necessities. While the economic boom being experienced in these two countries does not come without a price, negative effects on the environment for one, the investment opportunities are apparent. US companies will make money in the region in 2008, so should US investors.

While China is not known for its stellar performance in the human rights arena or in the environmental arena, a larger middle class may prove to be an equalizer that curtails China's questionable actions. As more and more of China's people become educated and foreign companies become ingrained into China's economy the government may soften its hardline communist practices. As this occurs investment opportunities will continue to increase. Smart investors will look to international markets in 2008.