As international accounting  and reporting standards become better, information asymmetries that currently exist between foreign and domestic investors will diminish. Adequate disclosure will, one hopes, accompany the development of institutions that will reduce corruption, and improve corporate governance, respect for private property and the rights of minority shareholders.
Together with the growth of deeper and broader markets for derivatives, these developments should lower the risk of cross-border investment, making a wider array of the world’s assets more attractive to international investors. Despite much progress, the process of global financial integration is far from complete. Though most direct barriers to international capital flows have been eliminated, numerous indirect barriers remain in place.