Final answer:
Emerging markets require adjustments when they have difficulty attracting inexpensive capital, lack access to international markets, possess non-market-oriented policies, and experience social issues hindering growth and overall economic security.
Step-by-step explanation:
Five weaknesses that indicate a need for adjustment in emerging markets include:
- Inability to attract inexpensive capital for investment in new businesses and for improving productivity. Without accessible and affordable capital, growth is stifled.
- Lack of access to new, international markets to sell goods, which is essential for adjusting supply with global demand.
- Government policies that are not market-oriented or that fail to provide education for the workforce may limit economic development.
- Social issues such as inadequate focus on health and education, which can trap economies in a cycle of poverty and inhibit growth.
- A lack of economic security leading to inefficiencies in resource use and a pessimistic outlook for the future.
These factors contribute to the divergence rather than convergence of economies, and addressing them can help low and middle-income countries break out of poverty traps and attract foreign aid and investmen