Factors contributing to the integration of global capital markets include the reduction in trade barriers, removal of capital controls, the growing disparity in tax rates among countries, floating exchange rates, and the free convertibility of currencies.

Question

Quizplus · Accepted Answer

While the reduction in trade barriers, removal of capital controls, floating exchange rates, and the free convertibility of currencies contribute to the integration of global capital markets, the growing disparity in tax rates among countries does not facilitate this integration but can actually create barriers or incentives for capital to move in ways that reflect tax avoidance or optimization rather than market integration.

Factors Contributing to the Integration of Global Capital Markets Include