Capital market imperfections leading to financial market segmentation include

Question

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Capital markets imperfections leading to financial market segmentation can result from various factors, including political risks that may affect cross-border investments, differences in corporate governance practices across countries that may influence foreign investors' decisions, and regulatory barriers that may restrict foreign investors' access to local markets. Therefore, all the options listed (A, B, and C) may cause financial market segmentation.

Capital Market Imperfections Leading to Financial Market Segmentation Include