Explore key points from Multinational business finance, Ch. 13. Gaining access to global capital markets should allow a firm to lower its cost of capital. This can be achieved by increasing the market liquidity of its shares and by escaping from segmentation of its home capital market. The cost and availability of capital is directly linked to the degree of market liquidity and segmentation. Firms having access to markets with high liquidity and a low level of segmentation should have a lower cost of capital and greater ability to raise new capital. A firm is able to in
Explore key points from Multinational business finance, Ch. 13. Gaining access to global capital markets should allow a firm to lower its cost of…