Large differences in interest rates between countries would indicate that

Question

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Large differences in interest rates between countries suggest a potential for gains from trade that have not yet been realized. Investors can borrow in a country with a low-interest rate and earn a higher return by investing in a country with a high-interest rate. This can help to equalize interest rates between countries over time as investors move their money to where it can earn the greatest returns. It also suggests a healthy level of competition and diversity in the global market. A collapsing market would likely see interest rates converging towards common levels rather than diverging.

Large Differences in Interest Rates Between Countries Would Indicate That