The internationalization of the financial markets has
A) allowed firms such as McDonalds to raise capital around the world.
B) raised the cost of capital.
C) forced companies to price everything in U.S. dollars.
D) all of these.

Question

Quizplus · Accepted Answer

The internationalization of the financial markets has allowed firms such as McDonalds to raise capital around the world. This has made it possible for companies to raise funds from a global pool of investors, which can increase their ability to finance growth and expansion. Option B is incorrect, as the internationalization of financial markets has not necessarily led to higher borrowing costs for firms. Option C is also incorrect, as companies are not forced to price everything in U.S. dollars; they can choose to price goods and services in the currency of the country in which they are operating.

The Internationalization of the Financial Markets Has