In: Economics
Why do international financial markets exist?
Answer:
Financial market-
It is the marketplace that facilitates the short term and long term finance needs of the companies. It is a medium between borrower and lender.
Existance of International financial markets:
Importance of international finance markets can be seen in following ways:
Firms can meet their short term finance needs from money market where money can be borrowed for shorter period of time.
Capital markets allow MNCs to enable long term funding, companies can come up with the IPO in primary market and raise money from public for long term