结构推理 What is an integrated market? a segmented market? Why is this distinction important in multinational financial management?
【正确答案】Purchasing power parity holds in an integrated market for goods, services, or financial assets. This means that equivalent assets trade for the same price. A market is segmented if purchasing power parity does not hold. Companies operating in segmented markets have prices that are locally determined. Companies operating in integrated markets face prices that are globally determined.
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