Which one is least correct?
Risk 2: Emerging market offer less protecion form interference by the executive branch than do developed markets
Risk 3: Emerging markets have limited access to secondary sources of liquidity.
Answer: Risk3 is incorrect. Emerging markets in fact have access to lenders on the world stage, such as IMF and World Bank.
I don’t understand…How come Risk 2 is correct? I know big emerging market like China, got more protection from the gov’t and the gov’t tend to interfere more than developed markets, since they are not free captial market.
Why is Risk 3 incorrect? It does say EMs have LIMITED access, comparing to developed markets, they don’t have as many secondary sources of liquidity, is that right?