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Globalization Is Not Only Concerned by Different Flows Around the World

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Essay

Globalization is not only concerned by different flows around the world but also with institutional arrangements that seek to deal with these flows. Discuss one of the four possible flows and how it impacts globalization.


Definitions:

Debt/Equity Ratio

A financial ratio indicating the relative proportion of shareholders' equity and debt used to finance a company's assets, often used to assess financial leverage.

Cost of Debt

The cost of debt is the effective interest rate a company pays on its debts, including loans and bonds, accounting for tax benefits.

Equity Financed

Refers to raising capital for a company through the sale of shares in the company to investors.

Tax Rate

The portion of one's income or a company's earnings attributed to taxes.

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