The Importance Of Globalized Portfolio Risks
Globalized portfolios have been a way in which new growth opportunities can occur for investors. Globalized portfolio investing is a type of investment that is typically easily traded, can be less permanent, and often times does not represent a controlling stake in an enterprise (Levin Institute, 2012). Investments can be represented in stocks or bonds and typically take form in a type of interest payment or non-voting dividends. For a country that is on an uphill trend, globalized portfolios can be a rapid source of development to help the economy that is emerging move quickly in order to take advantage of potential economic opportunity that can create wealth and job opportunity (Levin Institute, 2012). When economic situations take a turn downhill, the influx of money into the country can be minimal. Despite benefits of globalized portfolios, there are also risks that follow. It is of importance for investors to be able to identify and understand potential risks.
Globalized Risks …show more content…
With an increased scale of global opportunities, there is also an increase in the level of risk presented. This can range and fluctuate from interest and exchange rates to possible supply chain piracy (Lopes, 2013). With increased strategic measures, often times it involves increased levels of uncertainty. This can ultimately lead to impact on capital investments. Corporations and organizations that participate in globalized portfolios need access to comprehensive risk frameworks with the ability to model potential specific risks (Lopes,