Question

In: Finance

Propose the outcome if international financial markets were completely integrated.

Propose the outcome if international financial markets were completely integrated.

Solutions

Expert Solution

If the International Financial markets are completely integrated then-

A. there will be complete efficiency in determination of the prices all across the world and globe and there will be no descrepency in prices of commodity between different nations after being adjusted for the exchange rate.

B. There would be complete elimination of trade barrier and there will be a proper liberalisation policy of integration of the various economy in place.

C. There will be more multinational companies and there will be lower number of domestic centred company because the performance Arena will be in enlarged and financial capital will mostly be raised from outside the country.

D. There will be International standards and international regulations and there will be lower specific domestic centred regulations.

E. countries will be more dependent upon foreign inflows for their development than domestic inflows.

F. There will be incorporation of culture of different nations due to integration of businesses.


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