When a Country Moves from Segmented Capital Market to Globalized

question 2

Multiple Choice

When a country moves from segmented capital market to globalized capital market,a firm located in this country can achieve:

• A) lower cost of capital
• B) greater availability of capital
• C) lower risk premium on domestic assets
• D) All of the above are correct.

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Definitions:

Albert Bandura

A Canadian-American psychologist known for his work on social learning theory and the concept of self-efficacy.

Vicarious Learning

The process of learning by observing the actions and outcomes of others' behaviors rather than through direct experience.

Classical Conditioning

Classical conditioning is a learning process in which a biologically potent stimulus is paired with a previously neutral stimulus, resulting in a learned response to the neutral stimulus.

Self-Efficacy

An individual's belief in their own capability to successfully perform and achieve goals.