If interest rates are equalized between two countries,why would we still observe two-way capital flow between these two countries?

Question

Quizplus · Accepted Answer

Even if interest rates are equalized between two countries, investors may still choose to diversify their portfolios by investing in assets in both countries. This is because different assets, industries, and companies may perform differently in different countries depending on a variety of factors such as economic growth, political stability, and industry-specific developments. Therefore, investors may want to hold a mix of assets from both countries to reduce their overall risk and maximize returns.

If Interest Rates Are Equalized Between Two Countries,why Would We