International investment is investment that includes investments from different countries. If investor acquires investments in several countries, we could call him international investor. If investment portfolio includes investing instruments from different continents, it should be called a global investment.
International investment gives better diversification than local investment, but if it includes only countries from the same continent, diversification can be still poor, because economies or neighbor countries are always tightly related. So there is high probability, that if one’s country’s economy will suffer, the neighbor economy also will or at least will feel the consequences.
International investments should let to achieve better results than local. Diversification is a powerful tool and should be used in every portfolio. Investor that is choosing only domestic investments may miss many good investment opportunities because some markets are always more attractive than others.
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