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.

Correct Answer: International investments have less political risk than domestic investments.

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.

Bissoy MCQ Team

#Management #International Finance And Treasury

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