Emerging Mkt Finance (47) is a bad read.

IMHO, this should not be part of the CFAI readings. Finding the useful stuff here is like looking for a needle in a haystack. Do prep notes provide a good summary of this reading? Also, what’s the difference between market integration & liberalization? I could not find the definition of integration in the reading.

Market liberzliaztion means that the government is taking step to privatiz the economy, making it more effieient, less government. Intergration means how their ecnonmy is involed in the whole world enonomy. One key point, your ecnonmy can be liberalized and not be intergrated.

Yeah, liberalization is getting the state out of the business of running businesses (like state-run power companies, phone companies, and such) and more into creating an even playing field, upholding contracts, reducing subsidies, etc… Usually it means lightening regulation of businesses as well. Integration is mostly about trade policy (import and export tariffs and quotas) and investment policy, as in whether foreigners are allowed to invest and under what conditions (especially repatriation of profits), also to some extent things like how people in country X can invest abroad or not. Some regulations also come into play, for example there may be international standards for trade and investment that country laws don’t fully permit compliance to (because complying would break some other local restriction). ws’ point is well taken. Your economy could be liberalized but not integrated. It is usually hard to integrate the economy if it is not liberalized, however, although sometimes some sectors of the economy can be more integrated than others even if the economy is not fully liberalized. Usually if some sectors are more integrated than others, though, it is because those sectors are more liberalized.

Thanks guys. The reading defines market liberalization as allowing inward and outward equity investment (Page 190, Reading 47), but I do not see a definition for market integration there. Can someone point out where they got the answer? Thanks,

abacus Wrote: ------------------------------------------------------- > Thanks guys. The reading defines market > liberalization as allowing inward and outward > equity investment (Page 190, Reading 47), but I do > not see a definition for market integration there. > Can someone point out where they got the answer? > Thanks, The word intergration is scattered everywhere in CFAI material.