QuestionAugust 20, 2025

An integrated international capital market is __ compared to a nonintegrated market. less volatile less resistant to change highly volatile more shock-proof

An integrated international capital market is __ compared to a nonintegrated market. less volatile less resistant to change highly volatile more shock-proof
An integrated international capital market is __ compared to a nonintegrated
market.
less volatile
less resistant to change
highly volatile
more shock-proof

Solution
3.6(297 votes)

Answer

less volatile Explanation 1. Understand Market Integration Integrated markets allow for capital to flow freely across borders, leading to diversification and risk-sharing. 2. Analyze Volatility With increased diversification, integrated markets tend to be **less volatile** as risks are spread out globally.

Explanation

1. Understand Market Integration<br /> Integrated markets allow for capital to flow freely across borders, leading to diversification and risk-sharing.<br /><br />2. Analyze Volatility<br /> With increased diversification, integrated markets tend to be **less volatile** as risks are spread out globally.
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