The financial system brings together people or organizations that have excess funds with those who need funds. The system includes the banking industry as well as the capital markets. The capital markets are commonly used to support the purchase of long-term assets through the issuance of bonds and stock. This system exists domestically and internationally.

Research international capital markets using your textbook,  University online library resources, and the Internet. Respond to the following:

• What is the international capital market? Why would an international business make use of an international capital market?
• Describe the important features of the foreign exchange market. Why is this market critical for international businesses? What risks does this market impose on international business? What factors drive changes in exchange rates within this market?

Write your response in 400 words . Apply current APA standards for writing style to your work. All written assignments and responses should follow APA rules for attributing sources.