Compare and contrast the financial instruments, risks, and rewards of investing in the international bond markets and international equity markets.

International bond and equity markets play a significant role in our global economy. They account for hundreds of trillions of dollars on a worldwide scale. Despite their significant roles in the economy, they have very different characteristics. Reflect on your reading from this week and consider what types of companies would invest in these markets.

With these thoughts in mind, address the following:

• Compare and contrast the financial instruments, risks, and rewards of investing in the international bond markets and international equity markets. Include in your comparison the types of businesses that would issue securities in each market type or invest (buy) securities in these markets.
• Explain whether you agree that a typical investor will need to have more exposure to these markets in the future. Support your position using this week’s Learning Resources.