Answer to Question #92410 in Finance for BUSI

Question #92410
Global Advisers Company (GAC) is a registered investment counseling firm solely
involved in managing international securities portfolios. After much research on the
settling
trades made by nonresidents. Senior finance officials in the government are working
to deregulate capital flows and foreign ownership, but GAC’s political consultant
believes that isolation sentiment may prevent much real progress in the short term run.
a) Briefly discuss four aspects of the South Korea’s environment that favour investing
actively and four aspects that favour indexing.
1
Expert's answer
2019-08-08T11:13:46-0400
  1. High transaction costs- it discourages foreign investors from engaging in active trade and this may lead to inefficiencies that can be exploited by other active investors.
  2. Capital restrictions- restrictions on capital flow discourages international businesses from trading and this may segment South Korea’s market
  3. Detailed account standards and good financial disclosure- it offers business analysts a chance to investigate the market for them to discover inefficient priced insecurities.
  4. Economic diversity- the economic diversity in South Korea’s will offer the international investors an opportunity to implement efficient strategies. 

Need a fast expert's response?

Submit order

and get a quick answer at the best price

for any assignment or question with DETAILED EXPLANATIONS!

Comments

No comments. Be the first!

Leave a comment

LATEST TUTORIALS
New on Blog
APPROVED BY CLIENTS