Country risk Scope of the firm in emerging markets Benefits of conglomeration Focus is the mantra in New York/London. Good advice in emerging markets? Not necessarily. The scope of the firm depends on institutional context. What special in emerging markets
Predictable: note the difference between risk (known distributions) and uncertainty (unknown distributions)
Verifiable: note the role of asymmetric information.
Enforceable: note the importance of legal systems, property rights, and enforcement mechanisms.