Global Cost and Availability of Capital A firm that must source its long-term debt and equity in a highly illiquid domestic securities market will probably have a relatively high cost of capital and will face limited availability of such capital which will,in turn,damage the overall competitiveness of the firm. Firms resident in industrial countries with small capital markets may enjoy an improved availability of funds at a lower cost,but would also benefit from access to highly liquid global markets.Global Cost and Availability of Capital A firm that must source its long-term debt and equity in a highly illiquid domestic securities market will probably have a relatively high cost of capital and will face limited availability of such capital which will, in turn, damage the overall competitiveness of the firm. Firms resident in industrial countries with small capital markets may enjoy an improved availability of funds at a lower cost, but would also benefit from access to highly liquid global markets