Singer-Terhaar - country allocation change

All, if a country becomes more integrated with global economy, the risk premium will decrease and the E(R) will decrease.

If country A is expected to become more integrated and country B is expected to remain unchanged, would you allocate money to country A or country B? I would initially think country B as the E(R) for country B would be unchanged but country A would decrease.

However, there is a CFAI online question that states because a country is becoming more integrated, the asset prices from country A will increase as the required returns are now lower… so discounting cash flows at a lower required return increases asset prices. Which makes sense to me as well.

Any thoughts?

Potentially answering my own question here

If you expect the risk premium to decrease due to more integration, the asset prices will “immediately” increase, and THEN the E(R) from the readjusted pricing onwards is therefore less…