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Emerging Stock Market (Foreign Investment)

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As an investor, what factors would you consider before investing in the emerging stock market of a developing country?

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As an investor considering investing in an emerging stock market of a foreign country, there are several things I would consider:

1) How much to invest: As with any investment, a cost-benefit analysis should be considered. Emerging markets are generally very unstable and, therefore, present an extremely high risk investment opportunity. However, this is also fertile ground for enormous potential gain. Because of the risk involved, an examination as to the investment's effects upon the overall volatility of one's portfolio should be considered. In other words, I wouldn't stake a significant portion of my portfolio into this sort of investment.

2) Opportunities for conflict resolution: Does the market afford the investor any conflict resolution arrangements such as arbitration? ...

Solution Summary

This solution is an approximately 500 word essay detailing the concerns of an investor considering diversifying his/her portfolio with stock investments in an emerging market.

See Also This Related BrainMass Solution

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.

Assignment Guidelines:
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

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