Many investment consultants suggest that investors can diversify portfolio holdings locally by investing in multinational corporations (MNCs) to gain international diversification benefits. The rationale is that if an MNC can be regarded as a portfolio of international activities, its operating and financial performance should reflect its worldwide activities instead of factors solely related to the country where its headquarters are located or where its stock trades.
Read the following three articles and answer the questions:
Why Global Diversification MattersPreview the document, by Anthony Davidow
How to Invest in The RestPreview the document, by Ian Prior
Why U.S. Multinational Companies Don’t Provide International Diversification Benefits (Links to an external site.), by Larry Swedroe https://www.cbsnews.com/news/why-us-multinational-companies-dont-provide-international-diversification-benefits/
Can MNCs provide international diversification benefits for investors? Can MNCs be used as a substitute for investing directly in companies in foreign countries? Clearly state your rationale to defend your responses. Your answers are limited to no more than eight sentences.
On a farm in Charlotte, North Carolina, Graham was raised through the Great Depression (Bruns 13). Although he did not have a very prosperous beginning, he went on to attend two colleges (“How BillyGraham Shaped American Catholicism”), through which many of his friends referred to him as a “preacher.” (Bruns 16) His humble upbringing crafted a story that appealed to others who lived through the Great Depression, inspiring the public in a sense that things could get better from there. Graham cultivated his passion for evangelical work throughout college, where he and a friend worked to spread the word. Billy Graham and his Canadian friend, Charles Templeton, were close through the beginning of their careers, captivating their audiences with Templeton’s gift for mesmerizing speech and Graham’s ability to speak substance to the soul. Though the two of them reaped massive movement and monumental results throughout these early years, Graham believed that he and Templeton rallied the crowds more so with their “good looks” and “high energy levels” instead of with the power of God. (Aikman 59) Following disputes between the two led to their splitting of ways and Graham’s deeper plunge into the world of speaking. After gaining a few more years of experience and a touch more confidence in the impact of his message, Graham went on to hold the first of his “crusades” – a religious gathering held at night which contains a sermon, possibly some hymns, and a chance for those listening to publicly accept Christ – in Los Angeles, this going on for eight weeks straight. Graham led these crusades all over the country, converting hundreds of people along his journey, and didn’t stop there. Like that, at the age of 31, Graham’s movement really took off, leading to him even consulting with presidents, as covered in The Preacher and the Presidents, by Nancy Gibbs and Michael Duffy. The significance of this event was to lay the template down for his quick growth through the religious world, beginning his journey to greatly shift the thinking of those around him. Amongst all this, on July 14, 1950, Billy Graham visited former President Truman to discuss the rising fear of the people around the ongoing Korean War – some fearing that it could be the start of WWII. He called upon him to “get a microphone and encourage the people.” (Gibbs 24) At the end of this meeting, Graham went on to pray for the president before leaving humbly, unknowing to the trap that awaited him outside. Here, he was confronted by the press; being new to these situations, Graham dutifully answered all of the reporters’ questions, breaking Truman’s trust as he went. A famous picture of Graham and his friends kneeling on the lawn of the White House and praying shattered his stance with the former president, “the only president who suspected >GET ANSWER