Which of following is not a cause for global investment?
A. To gain access to important raw materials.
B. To produce products and/or services more efficiently than possible domestically.
C. To provide an expected risk-adjusted return in excess of that required.
D. International investments have less political risk than domestic investments.
Answer: Option D
Solution (By Examveda Team)
International investments have less political risk than domestic investments is not a cause for global investment. International investing involves selecting global investment instruments as part of a geographically diversified portfolio. People often invest internationally to broaden diversification and spread investment risk among foreign markets and companies.
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