What factors do you think are holding back the creation of a truly global capital market? How might a global capital market function differently from the present-day international market? (hint: some factors to consider are interest rates, currencies, regulations, and financial crisis for some countries)
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Discussion
A truly global capital market is one that enab | PLACE YOUR ORDER NOW AT writtask.com | single pool. In this case, investors such as individuals, corporates, and non-financial institutions with surplus funds may lend it to government, companies, or individuals seeking to | PLACE YOUR ORDER NOW AT writtask.com | capital market is beneficial to borrowers; in turn, they ensure there is the availability of massive funds to borrow as well as lower the capital cost.
Some people believe they need to have a truly global financial market for purposes of maximizing the profit | PLACE YOUR ORDER NOW AT writtask.com | factors that hold back the creation of such a capital market include the differences in economies of various countries, and the difficulty in integration given the uniqueness of the | PLACE YOUR ORDER NOW AT writtask.com | present-day internal market, a truly global capital market might function differently by considering the interest rates remaining the same, and the currencies used being accepted globally (Petry, 2020).
Lastly, the response from the first student identified currency, competition, and greed as major factors, which is accurate, especially competition | PLACE YOUR ORDER NOW AT writtask.com | emphasis on these factors demonstrated that certain resources are important in influencing the direction of the global | PLACE YOUR ORDER NOW AT writtask.com | value of the dollar, you ensured that countries with huge populations influence the strength of the market significantly
Again, the second student identified currency conversion and exchange rates as important in the development of the global capital market, which is evidenced by the existing barriers in their respective | PLACE YOUR ORDER NOW AT writtask.com | the agreement is necessary before a global market is established, it is important to also add that different economies have different considerations for their currency value and interest rates from | PLACE YOUR ORDER NOW AT writtask.com | interest rates, the regulations may have to be put in place for global economies might force the global capital market to function differently.