Describe the benefits to a country of integrating its financial markets with those of other countries.

CPA-Financial-Management-Section-3 Revision kit

Benefits of integration of financial markets
– Cross boarder sales opportunities.
– Diversified sources of capital at lower cost
– Improved capital mobility and reduced investment risk.
– Inflow of FDI due to use of technology.
– Debt-equity swaps where firm‟s can change. Existing bank loans and bonds into equity through integrated stock markets.

– Increased merger and acquisition activities hence economies of scale.
– Derived benefits of cross boarder listing of firms.

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