Risk Reduction by International Diversification
It is possible for multinational firms to reduce the risk of their profits by engaging in foreign operations (F/T). Empirical rests show that the (F/T) variable is inversely related to risk after allowing for size, industry classification, and other factors. This implies that international diversification offers to a multinational firm significant risk reduction advantages that are not available to a nonmultinational.© 1976 JIBS. Journal of International Business Studies (1976) 7, 70–80
Volume (Year): 7 (1976)
Issue (Month): 2 (June)
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