BUSINESS ADMINISTRATION
STRATEGIC MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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it reduces cost
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it benefits corprorate managers
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it closes failing businesses
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it increases firm’s size
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Detailed explanation-1: -They also offer a chance to enhance portfolio diversification by investing in foreign companies that have different characteristics and economic drivers than U.S. companies. Global diversification helps reduce the concentration risk of investing in one region, offering a potentially smoother ride over time.
Detailed explanation-2: -Diversification reduces risks, smooths out returns and helps improve long-term portfolio performance.
Detailed explanation-3: -It boosts the Nations’ economy: Global diversification can help boost the economy with the international gains from the various investments made. It increases the currency exchange rate: It has a long term effect increase on the country’s portfolio and the portfolio is less prone to risks.
Detailed explanation-4: -What is Global diversification, and why is it important when investing? Global diversification refers to a portfolio allocation to equities across the globe, including allocations to international and emerging market stocks, in addition to the U.S. stock market.