The reason it is difficult to invest in foreign markets is because it is exceedingly difficult to monitor what a foreign government or company is up to, which is why prior to 1914, investors who wanted to invest their financial wealth abroad in markets like China, ensured that the British government would deploy their navy into China if the borrowers defaulted upon their loans. This is effectively how Hong Kong, China became under British rule during the 19th and 20th century. China was unhappy ...
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