Capital market imperfections leading to financial market segmentation include:

Question

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All of the above factors can lead to capital market imperfections and result in financial market segmentation. Political risks, such as changes in government policies and instability, can make investors hesitant to invest in certain regions or countries. Corporate governance differences can lead to differences in investor protection and transparency, which can also affect investment decisions. Regulatory barriers, such as restrictions on foreign investment or capital flows, can further limit the integration of financial markets.

Capital Market Imperfections Leading to Financial Market Segmentation Include