A lack of transparency in emerging market economies leads to less FDI because investors are unable to make financially sound decisions due to a shortage of reliable information.

Question

Quizplus · Accepted Answer

Transparency is one of the key considerations for investors when making investment decisions. Lack of transparency can create uncertainty and increase risk for investors, which can deter them from investing in emerging market economies.

A Lack of Transparency in Emerging Market Economies Leads to Less