GLOBAL FINANCE

matter of course, many smaller firms are hampered by regula-
tions, high costs, and limited available capital at home. Although
the ``escape'' to global financing is difficult and costly, many
well-run firms have succeeded in achieving this during the last
two decades.

» Although a listing on a major world stock market, such as the

New York Stock Exchange, offers the potential for a large,
liquid supply of capital, companies need to manage the process
of getting there very carefully. Many firms begin by issuing
Eurobonds, which helps to raise profile and gain credibility
amongst international investors, and then graduate to listings on
foreign exchanges.

NOTE

1 Krasner, S. (1996) Power, Politics, Institutions and Transnational

Relations. In: Bringing Transnational Relations Back In (ed. T.
Risse-Kappen) Cambridge University Press, Cambridge.