The global capital market is growing at a rapid pace. There are two factors facilitating this growth: advances in information technology and deregulation by governments. While growth is rapid, there are risks associated with entering the global capital market, as well as, opportunities to participate. A global capital market benefits both investors and borrowers. It increases the supply of funds available for borrowing and lowers the cost of capital. At the same time, investors enjoy a wider range of investment opportunities to help diversify their investment risk.

Some analysts are concerned that deregulation will leave individual nations vulnerable to speculative capital flows which could result in a destabilizing effect on national economies. There are also instances where a lack of information about the fundamental quality of foreign investments may encourage speculative flows. Investors who

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Roll over the items on the left to determine which are risks that discourage international investing and which are opportunities. Then, drag the item to the correct position on the chart. International portfolios Risks Opportunities Hot money Change in government restrictions Interrelated international Reducing risk reduction capital market Financial services Faster and more information outside of regulation Information gap Liquidity Roll over the items on the left to determine which are risks that discourage international investing and which are opportunities. Then, drag the item to the correct position on the chart. International portfolios Risks Opportunities Hot money Change in government restrictions Interrelated international Reducing risk reduction capital market Financial services Faster and more information outside of regulation Information gap Liquidity

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Risks Information GapReducing Risk Reduction Fin... View the full answer