International diversification and the multinational enterprise
The introduction of recent developments in the area of finance theory into the mainstream of work on international finance includes the mean-variance portfolio theory model and the more-sophisticated capital-asset pricing model (CAPM). These tools are applied to demonstrate that it is possible to reduce the risk of any domestic portfolio by going international. This gain from international-risk diversification is not available from industrial diversification within an economy. The study also explores recent developments in the international monetary system which create barriers to the free movement of capital between nations. Both theoretical and empirical work on the financial aspects of multinational enterprise are reported. 109 references, 50 tables.
- OSTI ID:
- 6707368
- Country of Publication:
- United States
- Language:
- English
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