continue to investigate the relative international diversification benefits of ADRs. However, the empirical findings are inconclusive. For example, ussing weekly data of 113 ADRs from 8 countries (Australia, France, Japan, Netherlands, South Africa, Spain, Sweden and UK) during the period of January 1980 to September 1994, Jiang (1998) find that US portfolio with investment in ADR portfolios achieves better risk-adjusted returns than that containing foreign market index portfolios. Differing from Jiang
Running head: INTERNATIONAL PORTFOLIO DIVERSIFICATION International Portfolio Diversification International Portfolio Diversification Globalization resulted, among other things, in a noticeable increase in foreign trade and investment worldwide. For individuals, the main type foreign investment is foreign portfolio investment (or foreign indirect investment) which is “the investment by individuals, firms, or public bodies (e.g., governments or nonprofit organizations) in foreign financial
Introduction Diversification is a method of investing that been shown to increase portfolio return while reducing portfolio risk as measured by standard deviation. This method specifically increases the efficient frontier for investors. The challenge to an investing firm is an appetite by its customers for an ever increasing efficient frontier. One area to explore to obtain this increase is through further diversifying through international diversification. International portfolio diversification gives
value of diversification Introduction Every finance students have learnt diversification is to reduce total risk by investing a basket of assets in portfolios. But what contributes to the success of portfolio diversification? A large number of assets? A variety types of asset allocation? Adding international investment? Numerous of risk factors? They are all indicators of a well-diversified portfolio. In this case, we will discuss about the advantages and disadvantages of diversification in portfolio
The value of diversification Introduction Diversification is worth more than a word. It works on reducing the total risk of a portfolio with different asset types. But what contributes to the success of portfolio diversification? A large size of portfolio? A variety types of asset allocation? Adding international investment? Numerous of risk factors? They are all indicators of a well-diversified portfolio. But it is hard to achieve a perfectly diversified portfolio in reality because you cannot diversify
Summary Diversification is one of the key components of corporate level strategy. It not only helps companies to spread their risks but also capitalizes their strengths. One of the epitomes of applying diversification strategy and being successful in diversification is Nike, Inc. This paper discusses Nike’s diversification strategies and how the company succeeds in using it. Along with corporate level strategy, this paper also touches upon the international strategy that Nike uses. Key Tie-Ins •
YUNNAN BAIYAO: PRODUCT / MARKET DIVERSIFICATION Yunnan Baiyao Group Co., Ltd. is part of the pharmaceutical industry known for its unique traditional herbal medicines specializing in the treatment of open wounds, fractures, contusions and strains. The business has undergone changes in the recent years to modernize not only the structure of the company but also with the aim to diversify its market and products in order to remain competitive at a global level. The long history of Yunnan Baiyao’s
ever increasing competition in a saturated market, trying to maintain market share during economic downturn. In contrast Sandford has a strong international presence in the hotel/leisure industry and is looking at diversification to improve their competitive advantage and compliment their current offerings. The opportunity
proves the hypothesis of marketing: - Related diversification is a more successful strategy for growth among firms than unrelated diversification. It explains the concept of diversification, the rationale of diversification, types of diversification, diversification strategies, and dimensions of diversification. This paper analyses the given hypothesis using various examples and reaches a conclusion. Keywords Related, unrelated, diversifact, diversification, diversifame, diversifad, diversifriction
CHAPTER 11 International Strategic Management After studying this chapter, students should be able to: > Characterize the challenges of international strategic management. > Assess the basic strategic alternatives available to firms. > Distinguish and analyze the components of international strategy. > Describe the international strategic management process. > Identify and characterize the levels of international strategies