International diversification

International diversification

The attempt to reduce risk by investing in more than one nation. By diversifying across nations whose economic cycles are not perfectly correlated, investors can typically reduce the variability of their returns.

International Diversification

Investment of one's portfolio in securities that are traded in various countries. This is done to reduce risk, often political risk. For example, if one country's government announces a larger than normal budget deficit, or the central bank raises interest rates, this may affect security prices in one country, but not necessarily in other countries that did not take equivalent steps. Likewise, if a whole industry fails in one country but thrives in another, investing in the same industry in both countries hedges one's risk. Some analysts argue that international diversification is less effective in an era of globalization, but other analysts dispute that.
References in periodicals archive ?
In its assessment, S&P emphasises the regulatory stability provided by the new gas sector reform, the prudent management of the company's international diversification and its regulated business, which offers high predictability and stability for EnagEis' revenues.
Most SWFs adopt a very conservative investment approach that focuses on international diversification by region and by asset class
Abstract We examine the role of ownership structure on international diversification during institutional transition.
New chief executive James Henderson said: "Overall it's been a good performance in 2014 for the group, driven by both the continued development of our UK-facing operations and our international diversification, together with a successful World Cup.
Chief executive James Henderson said: "It's been a good performance in 2014, driven by both the continued development of our UK-facing operations and our international diversification, together with a successful World Cup.
In the only microeconomics paper of this issue, Mark Purdy and Kuangyi Wei conduct an empirical investigation on whether and under what circumstances international diversification is beneficial to firms' profits, revenue, and return on capital.
Zameer Choudhry who is the architect of Bestway's international diversification has overseen Bestway emerge as Pakistan's leading foreign investor with investments in excess of $1.
This is my first Summit, and I will be sharing my perspectives on the global economy and how international farmland investing provides a great combination of real estate, commodities, business and international diversification.
The company offers international diversification, too.
Specific characteristics related to ownership structure, shareholder activism, and generation running the firm (GFF), may have a decisive influence in the international diversification process of family firms.
Hypothesis 2 predicted a positive relationship between contingent pay and international diversification.
Qatar's economy and its private sector are poised for rapid growth and international diversification.

Financial browser ?
Full browser ?