Which of the Following Factors Contribute to the Integration of the Global

question 2

Multiple Choice

Which of the following factors contribute to the integration of the global capital markets?

• A) The reduction in trade barriers
• B) The removal of capital controls
• C) The harmonization of tax laws
• D) Floating exchange rates
• E) All of the above

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Definitions:

Herfindahl Indexes

Measures of market concentration, calculated as the sum of the squares of the market shares of all firms within the industry.

Market Power

The ability of a firm or group of firms to influence the price and production levels in the market to their advantage, often due to limited competition.

Concentration Ratio

A measurement of the market share or output controlled by the largest firms within an industry, used to assess the level of competition.

Costly to Ship

Refers to items or materials that are expensive to transport, typically because of their weight, size, or special handling requirements.