International financial markets offer opportunities for diversification from "summary" of International Financial Management, Abridged Edition by Jeff Madura
International financial markets provide investors with the opportunity to diversify their portfolios across different countries, currencies, and asset classes. Diversification is a key principle of investment management that involves spreading investments across a range of assets to reduce risk. By investing in international financial markets, investors can access a wider range of investment opportunities that may not be available in their home country. One of the main benefits of diversifying internationally is reducing the impact of country-specific risks on an investment portfolio. For example, political instability, regulatory changes, or economic downturns in one country may have a minimal effect on investments in other countries. By spreading investments across different countries, investors can minimize the impact of adverse e...
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