When world capital markets are mildly segmented, there are opportunities to:
A) Raise funds at a lower cost in capital markets of another country.
B) Reduce the risks of doing business in foreign markets.
C) Earn the same required rate of return on securities of comparable risk.
D) All of the above.
E) None of the above.

Question

Quizplus · Accepted Answer

When world capital markets are mildly segmented, firms can take advantage of differences in capital costs across countries, allowing them to raise funds at a lower cost in another country's capital market.

When World Capital Markets Are Mildly Segmented, There Are Opportunities