When global capital markets collectively react to international events like Enron's collapse,it is common to find:

Question

Quizplus · Accepted Answer

International events like Enron's collapse often lead to a reduction in the capital available to companies with investment grade credit ratings. This is because investors become risk-averse and avoid investing in companies that are perceived as risky or have a track record of financial irregularities. Thus, even multinational firms with high credit ratings may find it difficult to raise capital in such situations.

When Global Capital Markets Collectively React to International Events Like