One Possible Way of Achieving International Diversification in a Portfolio

question 56

True/False

One possible way of achieving international diversification in a portfolio is to invest in foreign firms which trade on United States markets or through ADRs.

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Definitions:

Inventory Shrinkage

The loss of products between procurement and sale, often due to theft, damage, or administrative errors, affecting inventory levels.

Sales Discounts

A reduction in the price of goods or services offered to customers, typically as an incentive to encourage prompt payment.

Normal Debit Balance

Refers to the expected balance of an account based on its classification in the accounting system, where assets and expenses typically have a debit balance.

Sales Discounts

Sales discounts are reductions in price offered to customers as an incentive for early payment or to encourage sales.