Q745
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.
AnswerAnswer: Option D
Solution
Answer: Option D
Solution:
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.