Final answer:
The value of good financial management is enhanced in the global markets due to market imperfections and multiple tax rates.
Step-by-step explanation:
The value of good financial management is enhanced in the global markets because of the much greater probability of market imperfections and multiple tax rates.
In global markets, there are various risks and uncertainties that can impact the financial performance of businesses. Good financial management practices can help mitigate these risks and optimize decision-making in the face of market imperfections and fluctuating tax rates.
For example, businesses with good financial management practices can navigate through different tax regulations and optimize their tax strategies to minimize their tax liabilities in different jurisdictions. They can also identify and mitigate potential market imperfections, such as information asymmetry or market failures, that can hinder efficient capital allocation and investment decisions.