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 & Solution

Correct Answer: Option D

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.

Question posted by Examveda

Community

Join the Discussion

Join the discussion

No comments yet Be the first to discuss this question.

Keep Learning

Which of following is not a cause for global investment

Which of following is not a cause for global investment?

Join the Discussion

Related Questions on International Finance and Treasury