Reading 66: International Asset PricingLOS b: 习题精选 border, factors, following, face

honeycfa

LOS b: Discuss the factors that favor international market integration.

Which of the following is NOT a factor that favors international market integration?

A) Many institutional investors diversify internationally.

B) International tax laws are determined by the International Monetary Fund (IMF).

C) Governments borrow and lend internationally.

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There is little in the way of uniform international tax law. Further, the IMF does not determine tax law. The other factors listed promote market integration.

 

[此贴子已经被作者于2010-4-15 15:32:46编辑过]

honeycfa

International market integration requires significant international capital mobility. In terms of volume of transactions, what has happened to international capital flows over the past two decades?

A) International capital flows have increased dramatically.

B) As a percent of domestic gross domestic product (GDP), international capital flows have remained constant.

C) International capital flows have increased modestly.

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The past two decades have witnessed large increases in the volume of international capital flows.

honeycfa

Which of the following factors favors international market integration even in the presence of barriers to international capital mobility?

A) Small investors are generally well diversified internationally.

B) Multinational corporations borrow and lend internationally.

C) The international banking system is primarily regulated by the World Bank.

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Multinational corporations borrow and lend on an international scale. This tends to promote international capital mobility and forces international competition in the credit markets.

honeycfa

Which of the following will NOT encourage international market integration?

A) International political stability.

B) Absence of trade restrictions.

C) Widespread use of the international capital asset pricing model (ICAPM).

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Widespread use of the ICAPM will not enhance market integration. If markets are integrated, then the ICAPM will be a useful model for international asset pricing.

luqian55

THANKS