Some investors believe that international investing introduces additional risks. Discuss these risks and how they can affect your return. Give an example.

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International investments have become popular because they can help US investors spread their risks among foreign companies in addition to national markets. It can also enable taking advantage of the possible growth in some global economies, especially in emerging markets.

However, international investments present unique risks, such as issues accessing different information, as many companies internationally do not offer the same type of information as US public information. Moreover, the costs of the investments can be higher compared to the domestic market, which can negatively influence the return.

Besides, changes in the currency exchange rates and any currency controls can enable fluctuations in the investment return. Some countries may even impose legislation to control foreign currencies that will prevent or delay investors of the company in which they invested from moving currency out of the country.

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Academic.Tips. (2023) 'Some investors believe that international investing introduces additional risks. Discuss these risks and how they can affect your return. Give an example'. 25 March.

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Academic.Tips. (2023, March 25). Some investors believe that international investing introduces additional risks. Discuss these risks and how they can affect your return. Give an example. https://academic.tips/question/some-investors-believe-that-international-investing-introduces-additional-risks-discuss-these-risks-and-how-they-can-affect-your-return-give-an-example/

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Academic.Tips. 2023. "Some investors believe that international investing introduces additional risks. Discuss these risks and how they can affect your return. Give an example." March 25, 2023. https://academic.tips/question/some-investors-believe-that-international-investing-introduces-additional-risks-discuss-these-risks-and-how-they-can-affect-your-return-give-an-example/.

1. Academic.Tips. "Some investors believe that international investing introduces additional risks. Discuss these risks and how they can affect your return. Give an example." March 25, 2023. https://academic.tips/question/some-investors-believe-that-international-investing-introduces-additional-risks-discuss-these-risks-and-how-they-can-affect-your-return-give-an-example/.

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Academic.Tips. "Some investors believe that international investing introduces additional risks. Discuss these risks and how they can affect your return. Give an example." March 25, 2023. https://academic.tips/question/some-investors-believe-that-international-investing-introduces-additional-risks-discuss-these-risks-and-how-they-can-affect-your-return-give-an-example/.

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"Some investors believe that international investing introduces additional risks. Discuss these risks and how they can affect your return. Give an example." Academic.Tips, 25 Mar. 2023, academic.tips/question/some-investors-believe-that-international-investing-introduces-additional-risks-discuss-these-risks-and-how-they-can-affect-your-return-give-an-example/.

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