Final answer:
Cross border financial transactions not related to trade in goods and services are often subject to scrutiny by host governments. These include speculative investments and money flows to tax havens, which can bypass domestic policies in a globalized economy.
Step-by-step explanation:
The type of cross border transaction likely to be frowned upon by a host government without some form of additional agreements is the flow of financial capital that does not directly relate to the trade of goods and services, such as speculative investment flows or the movement of funds to tax havens like the Grand Caymans. National governments can attempt to regulate these flows with policies like the Tobin tax, but in a globalized economy, enforcing such measures can be extremely difficult. This is compounded by the ease with which businesses can operate in more financially permissible jurisdictions, undermining domestic fiscal policies. Moreover, concerns about illegal smuggling and irregular migration add to the complexity of cross border transactions, prompting the need for international cooperation and intelligence sharing to effectively manage borders.