Chile has been very successful at liberalizing its international capital markets. Suppose you worked for a New

Question:

Chile has been very successful at liberalizing its international capital markets. Suppose you worked for a New York-based company that was considering a large investment in Chile. Explain whether capital market liberalization would be a positive or negative factor in your investment decision, assuming Chile had a fixed relative to the U.S. dollar.
Exchange Rate
The value of one currency for the purpose of conversion to another. Exchange Rate means on any day, for purposes of determining the Dollar Equivalent of any currency other than Dollars, the rate at which such currency may be exchanged into Dollars...