Concept explainers
To explain: The reason for the growth of the global market in recent decades and will it continue or not in the next decade.
Explanation of Solution
The reason for the growth of the global market in recent decades and will it continue or not in the next decade:
The capital market has experienced significant growth in the recent decades globally. It can be attributed to the stocks, bonds, and bank loans that are totaling around $300 trillion. It is triple the size of the global economy.
The international equities are also experiencing a similar pattern. The advances in information technology and the deregulations carried out by different governments are the main reasons for this growth.
The trend of the growth is expected to continue in the next decades as more and more regulations are being relaxed by different governments all over the world. Hence, it can be said that the growth of the global market will continue in the next decade.
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Chapter 12 Solutions
International Business: Competing in the Global Marketplace
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