--%>

Advent of euro affecting international diversification

Explain how the advent of euro would affect the strategies of international diversification.

E

Expert

Verified

Since the euro-zone can have same monetary and exchange-rate policies, correlations among the euro-zone markets are likely to go up. This will decrease the benefits of the diversification. Although, to extent that adoption of the euro strengthens the economy of European, investors may benefit from the enhanced returns.

   Related Questions in Financial Accounting

  • Q : State Net Profit State Net Profit in

    State Net Profit in brief?

  • Q : Article on Valuation of assets Write an

    Write an article on Valuation of assets serves for both buyers and sellers of goods and services.

  • Q : Case study of harvesting a tree

    Recently, a friend accused her neighbor of harvesting a tree (sapling of balsam fir, Abies balsamea) from her land without permission. Her neighbor claims that he bought it from a Christmas tree plantation (growing in a clearing down the road).  Your friend says

  • Q : Types of international bond market

    List the important types of the international bond market instruments.

  • Q : Partner Reflection HRD Programs If you

    If you are working with a partner for your assignment, please answer the following questions individually and submit your paper separately.1. Why did you want to work together? 2. How did you di

  • Q : Multiplicity-Creativity as process

    Define the term Multiplicity (Creativity as process) in creative industry ? And also state the different personality traits and intellectual aptitudes which might contribute to creative thinking ?

  • Q : Direct loans-loan guarantees and credit

    Do you think that government of the country must assist the private business in conduction of the international trade through the direct loans, loan guarantees, and/or credit insurance?

  • Q : Accounting and Financial Management

    Part A During 2012 the Australian Company Woolworths Ltd (WOW) sold its subsidiary business called Dick Smith Electronics. Within 8 months of the FOR SALE sign going up Anchorage bought the Dick Smith Business for $20 million. This is the same amount Woolworths Ltd bought

  • Q : Determinants of operating exposure

    Describe determinants of the operating exposure.

  • Q : Prepare the balance sheet At the end of

    At the end of March, 2006 the balances in the various accounts of TTTTT & Company are as follows: Rs. in million Accounts Balance Equity capital 120 Preference capital 30 Fixed assets (net) 217 Reserves and surplus 200 Cash