Discuss the Effect of International Diversification on a Firm's Returns

question 57

Essay

Discuss the effect of international diversification on a firm's returns.

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Definitions:

Defence Mechanisms

According to Sigmund Freud, mechanisms through which the ego allows the expression of libidinal desires in a distorted or symbolic form.

Repression

A psychological defense mechanism where unsettling thoughts, memories, or desires are unconsciously pushed from the conscious mind.

Fundamental

Fundamental refers to serving as an essential component or basis for something, being of central importance.

Defence Mechanism

Psychological strategies brought into play by the unconscious mind to manipulate, deny, or distort reality in order to defend against feelings of anxiety and unacceptable impulses.