Question

Why do capital markets have special concerns in an international setting? A. To ensure fair and efficient trading across different countries.

B. To prevent the impact of global economic events on local markets.
C. To address currency exchange rate fluctuations and geopolitical risks.
D. To promote cross-border investments and economic stability.

Answer 1

D

Step-by-step explanation:

because foreign investment is more efficient and helps in the process of globalisation and it ensures economic stability.

Answer 2

Capital markets in an international setting have concerns relating to currency exchange rate fluctuations, geopolitical risks, fair and efficient trading, and cross-border investments and economic stability.

Step-by-step explanation:

Capital markets have special concerns in an international setting because they need to address currency exchange rate fluctuations and geopolitical risks. These concerns arise due to the interconnectedness of global financial markets and the increased movement of capital across different countries. For example, changes in exchange rates can impact the value of investments in international markets, and geopolitical risks can affect the stability of these markets.

Another reason why capital markets have special concerns in an international setting is to ensure fair and efficient trading across different countries. This involves establishing regulations and standards that promote transparency, protect investors, and prevent market manipulation.

Furthermore, capital markets in an international setting promote cross-border investments and economic stability. By allowing investors to diversify their portfolios globally, capital markets contribute to the flow of funds across countries, which can help economies grow and reduce dependence on domestic sources of financing.