An investor can earn a higher return in foreign markets than in the U.S.because

Question

Quizplus · Accepted Answer

All the options (A, B, and C) are correct factors that can contribute to an investor being able to earn a higher return in foreign markets than in the U.S. For example, investing in countries with higher real GDP growth rates can potentially yield higher returns, as can investing in countries with a high savings rate that leads to capital formation and investment opportunities. Similarly, foreign competitiveness in traditional U.S. products such as automobiles and steel can provide an opportunity for diversification and higher returns.

An Investor Can Earn a Higher Return in Foreign Markets