Question

Discuss how the rise of nationalism will affect the international financial markets and corporate financing decisions of both domestic and multinational firms.

Answer 1

Rise of nationalism means that citizens of a particular country are preferring National products rather than the international product and it will be leading to to increase in the overall amount of consumption of domestic product in the home country itself and there would be a lower amount of import in the country and there will also mean that export are also decreasing to large extent because the product are being consumed in the domestic country itself.

it will be impacting the international Markets and corporate financing decisions of domestic companies and multinational companies in a different manner as it will impact the domestic company and they will gain the share in a particular country whereas International companies will be facing the adverse effect of nationalism because people will be prefering their own domestic country product rather than multinational companies product.

Corporate financing decisions will also change in respect to both the domestic companies and international companies because there will be a shift in the demand and supply pattern and consumption pattern so the company will be changing its overall capital structure and other financing matrix.