Advantages and Disadvantages of Comprehensive Disclosures
a. Managers of U.S. firms sometimes allege that they are at a disadvantage when selling securities in international markets because U.S. disclosure and measurement standards are more comprehensive, stringent, and costly than are those of most other nations. Assume that these managers are correct and propose a solution to the problem.
b. Managers of non-U.S. firms sometimes argue that they are impeded from selling securities in U.S. financial markets because U.S. reporting standards are extensive and costly to implement. Propose a diplomatic solution to the problem, with due consideration to the costs and benefits of foreign and domestic business firms.