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What are the main disadvantages for a firm to be located in

Question: Market Liquidity. Answer the following questions:

a. Define what is meant by the term market liquidity.

b. What are the main disadvantages for a firm to be located in an illiquid market?

c. If a firm is limited to raising funds in its domestic capital market, what happens to its marginal cost of capital as it expands?

d. If a firm can raise funds abroad what happens to its marginal cost of capital as it expands?

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Accounting Basics: What are the main disadvantages for a firm to be located in

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