Studies suggest that international capital markets are not segmented anymore

Question

Quizplus · Accepted Answer

Although international capital markets are not completely integrated, there is evidence to suggest that they are becoming less segmented. This means that there is more cross-border investment than in the past, but there are still some barriers to full integration. This also means that cross-listing of shares may lead to some reduction in a firm's cost of capital, but it may not be as significant as if the markets were fully integrated. Therefore, option B is the best choice.

Studies Suggest That International Capital Markets Are Not Segmented Anymore