Analysts who believe that the globalization of capital has serious inherent risks argue that:
A) due to deregulation and reduced controls on cross-border capital flows,individual nations are becoming more vulnerable to speculative capital.
B) most of the capital that moves internationally is pursuing long term gains,and it does not shift in and out of countries as quickly as conditions change.
C) "hot money" is still relatively rare,primarily because although capital is free to move internationally,its owners and managers still prefer to keep most of it at home.
D) the lack of short-term capital is due to the relative paucity of information that investors have about foreign investments.
Correct Answer:
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