2006-09-22 15:43:53 · 11 answers · asked by katrina_ponti 6 in Business & Finance ➔ Investing
To state differently, what factors in addition to the usual investment risks should be of particular concern to multinational investor?
2006-09-22 15:55:52 · update #1
you mean like a military takeover or gov't coup?
Or some madman like Sadamm Hussein starts a massacre?
Or some lone wolf gov't decides to devalue their currency, or do away with it altogether and re-issue? Apparently many of the Slavic countries and those inside ex-Russia were doing that about every six months, just moving the zeroes over and changing the name; oops, that money's no good anymore.
Or maybe the Venezualan Chavez is hot on the socialist movement and decides that all corporations should be run by gov't; oops, no more private enterprise.
2006-09-22 16:39:20 · answer #1 · answered by dredude52 6 · 1⤊ 0⤋
Actually, investment risk can be reduced by investing internationally. The additional diversification reduces the risk to ones porfolio.
As several responders have already mentioned, there is currency risk and political risk; but those risks are also very real also with domestic investments. If you doubt that, cast your eyes on the value of the dollar during the last several years.
2006-09-23 01:08:46 · answer #2 · answered by Anonymous · 1⤊ 0⤋
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2016-10-17 11:48:57 · answer #3 · answered by briscoe 4 · 0⤊ 0⤋
The two main factors that are involved with international investments are currency risk and political risk.
2006-09-22 16:37:40 · answer #4 · answered by Ranto 7 · 1⤊ 0⤋
Currency risks - you can lose (or gain) if the value of the currency in the other country goes down (or up).
Political risks - unstable countries, countries have been known to nationalize (seize) industries
Data risks - a lot of other countries don't have as open a system as we do, easier for companies there to lie about stuff
Probably others I don't know of.
2006-09-22 15:47:12 · answer #5 · answered by larry n 4 · 3⤊ 0⤋
Yes; liquidity risk, exchange rate risk and country risk (aka political risk) are the major ones.
2006-09-22 15:51:19 · answer #6 · answered by escapegrl1 3 · 1⤊ 0⤋
Different markets have different rules and different governments have different regulations, plus you have currency fluctuations, different economies, and different tax laws.
2006-09-23 03:48:47 · answer #7 · answered by LORD Z 7 · 0⤊ 0⤋
It's a lot harder to get reliable information about foreign companies.
2006-09-22 18:10:50 · answer #8 · answered by Yardbird 5 · 0⤊ 1⤋
what wud such a hot babe like u worry about risks. :)
2006-09-22 15:52:07 · answer #9 · answered by king_aragorn_the_great 3 · 1⤊ 2⤋
see 419 in wikipedia about banks.
Then see fool.com for tips about money.
2006-09-22 15:48:45 · answer #10 · answered by ★Greed★ 7 · 0⤊ 3⤋