Syllabus A. Role Of The Senior Financial Adviser A4. Management of international trade and finance

A4f. Free movement of Capital 10 / 11

Syllabus A4f)

Discuss the significance to the organisation, of latest developments in the world financial markets such as the removal of barriers to the free movement of capital

Financial institutions joining together

e.g. banks, insurance companies etc all becoming a "one-stop" shop

This results in...

  • Economies of scale for the companies

  • Cost savings for customers

  • Less volatility of earnings for companies as they become more diversified

Globalisation of Financial Reporting Standards

particularly IFRS

  • Common FR means more efficient markets

  • Easier access to capital - greater cross-border investment