Problem
The argument in favor of current account convertibility (free trade) is that it leads to gains from trade. Are there any reasons you can think of why we might not be able to extend this argument to the financial transactions of the capital account? Or to put it differently, are there any ways that financial markets differ from merchandise and service markets?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.