answersLogoWhite

0

Most theoretical developments in international finance and macroeconomics are based on the notion that world capital markets are perfectly integrated. The pricing models also assume that expected returns and asset prices are determined in an internationally integrated financial environment in which an identical asset is traded at the same risk-adjusted price in all markets. Price discrepancies between two markets are arbitraged because there are no intracountry or intercountry restrictions on capital flows.

User Avatar

Wiki User

14y ago

What else can I help you with?

Related Questions

What are the barriers to international marketing of services?

describe in detail the barriers to international marketing of services


What has the author Douglas Wilder Morrill written?

Douglas Wilder Morrill has written: 'Economic effects of Japan's barriers to international trade and investment, 1951-1973 ...'


What are components of international business?

1)International Sales/trade| a)Imports & Exports b)Entrepot 2)International Investment a)Direct Investment b)Portfolio Investment


What are the indirect investment activities as entry strategy to international market?

what's the International Indirect Investment?


When was Basrah International Bank for Investment created?

Basrah International Bank for Investment was created in 1993.


When was Salam International Investment Limited created?

Salam International Investment Limited was created in 1952.


What are the barriers in the flow of international comunication?

There are many barriers that may stop the flow of communication in international areas. Different languages and a time difference can delay or stop international communications.


When was Mid Wynd International Investment Trust created?

Mid Wynd International Investment Trust was created in 1981.


Reduction of barriers to international trade?

Improved communication


What are direct and indirect barriers of international trade?

life


How do companys solve international language barriers?

Companies can solve international language barriers by hiring locals. Locals that speak their language will help translate for employees who don't.


How did the world trade organization contribute to Globalization?

Answer this question… It encourages international exchange by removing barriers to trade.