--%>

Factors for surge in the international portfolio investment

List some factors which are responsible for recent surge in the international portfolio investment (IPI)?

E

Expert

Verified

Recent surge in the international portfolio investments reflects the globalization of financial markets. Particularly, several countries have deregulated and liberalized their capital and foreign exchange markets in the recent years. Moreover, commercial and investment banks have facilitated international investments through introduction of products such as country funds and American Depository Receipts (ADRs). Additionally, recent advancements within the computer and telecommunication technologies led to the major reduction in the transaction and the information costs coupled with the international investments. Moreover, investors would have become much aware of potential gains from the international investments.

   Related Questions in Financial Accounting

  • Q : CASH AND ACCRUAL BASIS OF ACCOUNTING

    Using the data below,prepare abbreviated income statements for the year 2003 and 2004 on cash basis. Cash receipts from sales: 2003 2004 2005 on 2003 sales $295,000 $160,000 $30,000 On 2004 sales 0 355,000 90,000 On 2005

  • Q : Implications of purchasing power parity

    Explain implications of the purchasing power parity for the operating exposure.

  • Q : Restrictions of foreign equity ownership

    Describe various restrictions of foreign equity ownership.  Why countries impose these restrictions, explain your view on this?

  • Q : Uncertainty in dollar/franc exchange

    Suppose that your company has an equity position within the French firm. Explain some of the condition under which the dollar/franc exchange rate uncertainty does not have the exchange exposure for your company.

  • Q : Methods handling translation gains and

    How translation gains and losses are handled differently as per current rate method as compared to the other three methods, which is, monetary/nonmonetary method, current/noncurrent method, and the temporal method?

  • Q : What is correspondent bank relationship

    Explain what you mean by Correspondent bank relationship.

  • Q : Regions where uniform costing can be

    Write down the regions where uniform costing can be executed?

  • Q : Explain Return on Equity or ROE Return

    Return on Equity (ROE): The amount of net income returned as a percentage of share-holders equity. The return on equity measures a corporation's profitability by revealing how greatly profit a company produces with the money share-holders encompass in

  • Q : Investing in dual currency bonds What

    What an investor should consider before investing in dual currency bonds?

  • Q : Creatives and Suites What happens when

    What happens when creativity based on individual exceptionalism has evolved as part of the orthodoxy of Western managerial practice is applied within a creative business organisation in the business of “symbolic production&rdquo