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Those of us interested in international markets know that the U.S. Exchanges are not the only ones, and that it is rare to find "any" nation states with the same identical rules wrt the way companies do business and the markets.

Trade laws change, political systems develop, and business culture matures. Meanwhile, the world is becoming a smaller place wrt the financial markets. Whether all that change will have a positive or a negative influence on portfolio management probably depends upon the point of view of the investor/manager.

Brazil, Russia, India, and China(BRIC)all represent emerging economies with both great risk and great opportunity. There are many others.

The Public Company Accounting Oversight Board (PCAOB) created by the Sarbanes-Oxley Act of 2002 represented the first time in the U.S. that auditors could be held accountable for adhering to a uniform set of published auditing standards, but we had a viable stock market and business culture long before that. It does not seem too surprising that we are encountering some resistance in trying to enforce those standards on other nation states.

So ... perhaps some good compromises can be reached where everyone saves face, and the benefits of SEC approval are continued wrt these emerging market companies. If not, it is probably not the end of the world.

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