As a country begins to liberalize its capital account,what would you expect to happen to the difference between the interest rates for similar assets in this country and another country with open capital markets?

Question

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As the country begins to open up its capital account, it is likely to become more integrated with global financial markets. This increased integration will lead to a greater flow of capital across borders, making capital more freely available to borrowers and increasing competition among lenders. The result is likely to be a convergence of interest rates across countries, as lenders and borrowers seek out the best deal regardless of national boundaries. Therefore, the interest rate difference between similar assets in the country and another country with open capital markets is expected to get smaller.

As a Country Begins to Liberalize Its Capital Account,what Would