This problem describes what is internaltional investing and why it takes place. It gives some relevant references.© BrainMass Inc. brainmass.com March 4, 2021, 6:10 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. ...