When global capital markets collectively react to international events, like Russia's default on its sovereign debt, it is common to find

Question

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When global capital markets react to international events, it is common to find an impact on the ability to raise capital. This is because investors become more risk-averse and are less likely to invest in risky assets or provide capital to companies from affected countries. Option A is incorrect because the trade of foreign goods may be impacted depending on how the event affects the economy. Option C is incorrect because even diversified firms may be affected by external events, especially if they have significant exposure to affected regions or industries.

When Global Capital Markets Collectively React to International Events, Like