Convergence of accounting practices is expected to increase the flow of resources across borders.

Question

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Convergence of accounting practices means that there is greater harmonization and similarity in accounting standards across different countries. This makes it easier for companies to do business across borders by reducing the complexity and cost of adapting to different accounting standards. As a result, the flow of resources, including capital and investment, is expected to increase.

Convergence of Accounting Practices Is Expected to Increase the Flow