Return Behaviors of U.S. Based Multinational Companies
IMCA Investments & Wealth Monitor, Forthcoming
10 Pages Posted: 6 Apr 2017
Date Written: March 31, 2017
Abstract
The goal of this paper is to research the level of global exposure that U.S. based multinational companies (MNCs) truly provide investors. In our view, although U.S. based MNCs do provide significant exposure to the international markets through revenue sources, they do not provide significant investment return diversification. However, some U.S. based investors believe that as a result of globalization, they can obtain significant global investment diversification through investment in U.S. based MNCs. The aim of this paper is to provide practical evidence, contrary to some investor’s belief, that U.S. based MNCs do not provide adequate exposure to the international markets comparable to that of a direct international investment to obtain the benefits of a globally diversified portfolio.
Keywords: Multinational Companies
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