Examveda

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.

This Question Belongs to Management >> International Finance And Treasury

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