Many investment consultants suggest that investors can diversify portfolio holdings locally by investing in multinational corporations (MNCs) to gain international diversification benefits. The rationale is that if an MNC can be regarded as a portfolio of international activities, its operating and financial performance should reflect its worldwide activities instead of factors solely related to the country where its headquarters are located or where its stock trades.
Why Global Diversification Matters
Actions, by Anthony Davidow
Actions, by Ian Prior
Why U.S. Multinational Companies Don’t Provide International Diversification Benefits (Links to an external site.), by Larry Swedroe
QUESTIONS:
Can MNCs provide international diversification benefits for investors? Can MNCs be used as a substitute for investing directly in companies in foreign countries? Clearly state your rationale to defend your responses. Your answers are limited to no more than eight sentences.
I just need the eight sentences not cover page or references
keep it simple
Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.
Read moreEach paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.
Read moreThanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.
Read moreYour email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.
Read moreBy sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.
Read more