If borrowing prices differ across markets, then issuers can reduce their overall capital costs by raising funds available within the market in which each has a comparative cost advantage and swapping the proceeds. Domestic and international debt markets seem to be complements within the sense that they supply firms with totally different monetary companies. In this context of economic globalization, worldwide equity and debt issues, have taken off along side the recent improvement of domestic markets for equity and debt. In truth, worldwide capital raisings grew greater than 4-fold in the period from 1991 to 2008 (see Gozzi et al. The argument is that volatile real exchange rates makes manufacturing within the tradable sector more dangerous relative to nontradables . However, the argument hinges on the yet-to-be-tested assumption that growth alternatives are concentrated within the tradable sector, something that needs to be proven.