Emerging capital markets have become in vogue as a result of a wave of mass financial liberalization, which occurred towards the end of the 1980s. Emerging financial markets behave differently to developed financial markets because of their level of integration (or conversely degree of segmentation) with world markets. A major aim of this course is to examine the issues pertinent to investment in emerging financial markets from both the perspective of international investors and policy makers. These broadly revolve around financial crises, liberalization and capital flows, pricing of political risks and other risks, governance and financial architecture, and regional integration.