In fact, the barriers to cross-border capital movements have increasingly been lifted as a result of political measures and technological advances. 1  BIS Review 80/2000  The global integration of the financial markets is anything but an end in itself. Not only does it open up to investors a broad new range of investment opportunities for diversifying portfolio risks.
It also improves the refinancing options open to issuers of securities. In addition, it tends to boost securities trading. A high degree of liquidity in trading is a key prerequisite of efficient price formation in the capital markets. And, after all, efficient capital markets are an essential component of a well-functioning economy.