Answer to Question 1
Emerging markets have high political stability, sound currencies, low inflation, and privatization policies. Emerging markets also have policies that facilitate repatriation of dividends and capital, policies that are aligned with international accounting standards, and open disclosure of director's interests. Other traits include a sound and comprehensive system of corporate law, a liquid and well traded securities market, a high savings rate, and strong government support for internationalizatio n.
Answer to Question 2
High