This problem describes what is internaltional investing and why it takes place. It gives some relevant references.© BrainMass Inc. brainmass.com October 24, 2018, 6:09 pm ad1c9bdddf
What is international investing?
International investing has probably been around for centuries, and probably for thousands of years. This fact might be a bit surprising. International investing does not seem easy. International investors need to analyze assets from a huge number of asset classes (stocks, bonds, derivatives, etc.), and from different national markets and currencies. The number of individual securities to invest presents a big challenge for international investors. The challenge is not a valuation problem since the same techniques and models used to value a domestic asset are usually used to value a foreign asset. The challenge is a practical once: international investors have to reduce each investment to a tractable number of parameters; otherwise the resources spent on international investing would be too high. ...
Investing in foreign markets.
Dr. Washington had recently overheard a few of his colleagues discussing possible investments in the international marketplace. Wanting to explore all of his potential investment options, he has asked you to explain the various aspects of investing in foreign markets.
Your job is to research the following concepts and present your explanations to Dr. Washington as a formal research paper:
ââ?¬¢ Foreign investments and portfolio diversification
ââ?¬¢ Reasons to invest internationally
ââ?¬¢ International investment risks
ââ?¬¢ International investment mediums
You must provide examples of these concepts using at least two articles from the Library's full-text database. These are a few examples for article topics:
ââ?¬¢ four Asian tigers
ââ?¬¢ China's national image transformation
ââ?¬¢ government realignment
The paper must include all necessary in-text citations as well as a complete reference list formatted in APA.
ââ?¬¢ Research the four international investment concepts listed in the Assignment Description.
ââ?¬¢ Find at least two articles in the Library's full-text database that provide examples for two of the concepts.
ââ?¬¢ Write a formal research paper for Dr. Washington that answers the following questions:
o What is portfolio diversification? Explain.
ïâ??§ Why are foreign investments effective at diversifying a portfolio?
o What are the main reasons to invest in international markets? Explain.
o What are the major risks associated with investing internationally?
o What are the various methods for investing in an international market?
ââ?¬¢ Compile your answers into a single Word document.
o Provide in-text citations and a complete reference list in APA format.
ââ?¬¢ A 3-4 page, double-spaced research paper that explains the four concepts of international investments listed in the Assignment Description
o At least two articles from the Library's full-text database must be used within your paper
o A complete reference list in APA format must be submitted along with your research paper