Thailand is a risky emerging market, with an volatile economic history. The Thai economy is now growing quickly. The Thai stock market has an average Price/free cash flow ratio of 35x.

France is a developed economy. A comparable ratio in the French stock market is 15x. So, a typical stock in Thailand with FCF of US$1 equivalent has a price of US$35, and a French stock with FCF of US$1 has a price of $15.

Using the growing perpetuity formula, P = {Free Cash Flow next year}/(k-g), explain the likely reasons for the difference in the Thai and French ratios.