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If barriers to international securities markets are raised, will a country's interest rate be more or less susceptible to foreign lending and borrowing activities? Explain.
If barriers to international securities markets are raised, will a country's interest rate be more or less susceptible to foreign lending and borrowing activities? Explain.
If international securities market barriers are raised, a country's interest rate will likely become
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susceptible to foreign lending and borrowing activities. With barriers, funds will flow
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freely in between countries. Then, the amount of foreign funds invested in any country
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adjust abruptly and affect interest rates.
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