10 points.
Global - you invest in companies International - first countries then companies. Just going Global might not be enough - Companies in your market might not represent best companies in the industry - You still exposed to your country risks
Comp Sci, I think you have it reversed. My understanding is that Global is better than International. International is just diversifying by country. Global is diversifying by country and industry. In other words, holding automobile stocks from 5 different countries is International Investing, but not Global Investing.
BruinKJC Wrote: Correct +10 points. Tell CFAI I have awarded you 10 points. ------------------------------------------------------- > Comp Sci, I think you have it reversed. > > My understanding is that Global is better than > International. > > International is just diversifying by country. > Global is diversifying by country and industry. > > In other words, holding automobile stocks from 5 > different countries is International Investing, > but not Global Investing.
international allocates by country while global focuses more on sectors, global is better due to correlation between countries increasing…
Global: Diversify Geographically Diversify Industries International: Diversify geographically
page 150 vol 6 “Why still diversify internationally” Top of the page. Global is a better choice, BUT THERE ARE STLL REASONS to diversify internationally and not just nvest in global companies in your market
And to finish it up “Just going Global might not be enough” means that even though you should go global, dont forget that going for global companies in your market wont be enough.