When a country moves from segmented capital market to globalized capital market,a firm located in this country can achieve:

Question

Quizplus · Accepted Answer

Moving from segmented capital market to globalized capital market allows access to a larger pool of investors and capital sources, thus reducing the cost of capital and increasing availability of capital. Additionally, integration with global capital markets can lead to a reduction in risk premium on domestic assets due to increased competition and improved market efficiency. Therefore, all of the choices (A, B, and C) are correct.

When a Country Moves from Segmented Capital Market to Globalized