Question

Why might a corporation seek to raise funds outside its local capital market? Answer Should not be less than 500 words.

Answer 1

There are various sources from where a company can raise funds. These are essential for the firm to grow and have a good position. For the growth purposes they need funds continuously. First, they look inside the firm that is from retained earnings, etc. If they have utilised the retained and other internal sources. Then they go for external sources. They external sources are one of the major sources from which funds can be raised such as equity and debt. After raising the funds from local market they go overseas capital market. Going overseas due to several reasons. The costs of raising there might be less. Cetian countries provide lucrative costs so that overseas players or companies can come and raise the funds easily. The other reason might be local firm may want to make thier presence in overseas capital market so that brand gets promoted. The company might become familiar in overseas countries as well. So, there be several reasons.

Note: I have provoded the basis reasons you can now elaborate.