Whether U.S. companies with global operations can give international diversification. Introduction: International diversification means investing in various countries rather than one country to diversify the risk.

Question

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Answer 1

Question

Chapter 25, Problem 1PS

Summary Introduction

To determine:

Whether U.S. companies with global operations can give international diversification.

Introduction:

International diversification means investing in various countries rather than one country to diversify the risk.

Expert Solution & Answer

Explanation of Solution

U.S. based companies which have a multinational business and doing work globally is not considered as an international diversification. A US multinational companies are owned by US investors so it is considered as a US Company only. For international diversifications, US investor should invest in a foreign company. Then that is called as an international diversification.

In the light of above, though the US company's capitalization and other foreign companies' diversification is 40:60. The US investor for international diversification should invest 40% of total investment to the foreign companies and other 60% should invest in US companies.

Conclusion

Therefore, the claim that US companies with global operations can give international diversification is not correct.

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Answer 2

Question

Chapter 25, Problem 1PS

Summary Introduction

To determine:

Whether U.S. companies with global operations can give international diversification.

Introduction:

International diversification means investing in various countries rather than one country to diversify the risk.

Expert Solution & Answer

Explanation of Solution

U.S. based companies which have a multinational business and doing work globally is not considered as an international diversification. A US multinational companies are owned by US investors so it is considered as a US Company only. For international diversifications, US investor should invest in a foreign company. Then that is called as an international diversification.

In the light of above, though the US company's capitalization and other foreign companies' diversification is 40:60. The US investor for international diversification should invest 40% of total investment to the foreign companies and other 60% should invest in US companies.

Conclusion

Therefore, the claim that US companies with global operations can give international diversification is not correct.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 3

Question

Chapter 25, Problem 1PS

Summary Introduction

To determine:

Whether U.S. companies with global operations can give international diversification.

Introduction:

International diversification means investing in various countries rather than one country to diversify the risk.

Expert Solution & Answer

Explanation of Solution

U.S. based companies which have a multinational business and doing work globally is not considered as an international diversification. A US multinational companies are owned by US investors so it is considered as a US Company only. For international diversifications, US investor should invest in a foreign company. Then that is called as an international diversification.

In the light of above, though the US company's capitalization and other foreign companies' diversification is 40:60. The US investor for international diversification should invest 40% of total investment to the foreign companies and other 60% should invest in US companies.

Conclusion

Therefore, the claim that US companies with global operations can give international diversification is not correct.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Chapter 25, Problem 1PS

Summary Introduction

To determine:

Whether U.S. companies with global operations can give international diversification.

Introduction:

International diversification means investing in various countries rather than one country to diversify the risk.

Expert Solution & Answer

Explanation of Solution

U.S. based companies which have a multinational business and doing work globally is not considered as an international diversification. A US multinational companies are owned by US investors so it is considered as a US Company only. For international diversifications, US investor should invest in a foreign company. Then that is called as an international diversification.

In the light of above, though the US company's capitalization and other foreign companies' diversification is 40:60. The US investor for international diversification should invest 40% of total investment to the foreign companies and other 60% should invest in US companies.

Conclusion

Therefore, the claim that US companies with global operations can give international diversification is not correct.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 25, Problem 1PS

Summary Introduction

To determine:

Whether U.S. companies with global operations can give international diversification.

Introduction:

International diversification means investing in various countries rather than one country to diversify the risk.

Expert Solution & Answer

Explanation of Solution

U.S. based companies which have a multinational business and doing work globally is not considered as an international diversification. A US multinational companies are owned by US investors so it is considered as a US Company only. For international diversifications, US investor should invest in a foreign company. Then that is called as an international diversification.

In the light of above, though the US company's capitalization and other foreign companies' diversification is 40:60. The US investor for international diversification should invest 40% of total investment to the foreign companies and other 60% should invest in US companies.

Conclusion

Therefore, the claim that US companies with global operations can give international diversification is not correct.

Answer 6

Chapter 25, Problem 1PS

Summary Introduction

To determine:

Whether U.S. companies with global operations can give international diversification.

Introduction:

International diversification means investing in various countries rather than one country to diversify the risk.

Expert Solution & Answer

Explanation of Solution

U.S. based companies which have a multinational business and doing work globally is not considered as an international diversification. A US multinational companies are owned by US investors so it is considered as a US Company only. For international diversifications, US investor should invest in a foreign company. Then that is called as an international diversification.

In the light of above, though the US company's capitalization and other foreign companies' diversification is 40:60. The US investor for international diversification should invest 40% of total investment to the foreign companies and other 60% should invest in US companies.

Conclusion

Therefore, the claim that US companies with global operations can give international diversification is not correct.

Answer 7

Chapter 25, Problem 1PS

Summary Introduction

To determine:

Whether U.S. companies with global operations can give international diversification.

Introduction:

International diversification means investing in various countries rather than one country to diversify the risk.

Answer 8

Expert Solution & Answer

Explanation of Solution

U.S. based companies which have a multinational business and doing work globally is not considered as an international diversification. A US multinational companies are owned by US investors so it is considered as a US Company only. For international diversifications, US investor should invest in a foreign company. Then that is called as an international diversification.

In the light of above, though the US company's capitalization and other foreign companies' diversification is 40:60. The US investor for international diversification should invest 40% of total investment to the foreign companies and other 60% should invest in US companies.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Conclusion

Therefore, the claim that US companies with global operations can give international diversification is not correct.

Answer 12

Ch. 25 - Prob. 1PS Ch. 25 - Prob. 2PS Ch. 25 - Prob. 3PS Ch. 25 - Prob. 4PS Ch. 25 - Prob. 5PS Ch. 25 - Prob. 6PS Ch. 25 - Prob. 7PS Ch. 25 - Prob. 8PS Ch. 25 - Prob. 9PS Ch. 25 - Prob. 1CP

Whether U.S. companies with global operations can give international diversification. Introduction: International diversification means investing in various countries rather than one country to diversify the risk.

Concept explainers

To determine:

Whether U.S. companies with global operations can give international diversification.

Introduction:

International diversification means investing in various countries rather than one country to diversify the risk.

Explanation of Solution

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Chapter 25 Solutions

Whether U.S. companies with global operations can give international diversification. Introduction: International diversification means investing in various countries rather than one country to diversify the risk.

Concept explainers

To determine: Whether U.S. companies with global operations can give international diversification. Introduction: International diversification means investing in various countries rather than one country to diversify the risk.

Explanation of Solution

Want to see more full solutions like this?

Chapter 25 Solutions

To determine:

Whether U.S. companies with global operations can give international diversification.

Introduction:

International diversification means investing in various countries rather than one country to diversify the risk.