As our textbook defines it, the international capital market is a “network of individuals, companies, financial institutions, and governments that invest and borrow across national boundaries” (p. 227). In other words, the international capital market is what allows investment to flow across national borders. This is important to US firms as it increases the amount of investment that can flow into the US. Additionally, by giving US borrowers access to a larger range of lenders, US firms are able to drive down the cost of capital. Lower cost of capital means greater access to the funding necessary to drive growth.
Tag Archive 'finance'
Last week we discussed companies that are surreptitiously gathering user data while simultaneously skirting privacy laws. These companies continue to operate with the hope that the federal government will not tighten privacy laws and ruin their businesses. Meanwhile, companies developing drone technology are being stifled by rules and regulations that are supposedly in place to […]
Many, if not most, of us have grown accustomed to grocery stores that feature a discount card. We understand that when making purchases with that card, the grocery store is tracking our shopping preferences. We even expect those grocery stores to make business decisions based on the information they have collected from us and other […]
Over the last 30 years, Chief Executive Officer (CEO) salaries in the United States have grown from 40 times that of the average worker to over 600 times (Jones, 2013). As those salaries have grown, so has opposition to the ever growing levels of executive compensation. Although activists that oppose the current level of executive […]
There is good reason to believe the U.S. economy is headed for a period of stagnation. Robert Gordon rightfully points out that the U.S. workforce is shrinking as the number of workers entering their retirement years is outpacing the influx of new workers. As medical advances slowly push the average life expectancy up, this new […]