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Explain the Basics of Portfolio Strategy

question 17

Essay

Explain the basics of portfolio strategy. Identify the best approach to diversification using this strategy. Be sure to explain your rationale for arguing that the specified approach to diversification is the best.


Definitions:

Distribution Agreement

A contract between a seller and a distributor of the seller’s products setting out the terms and conditions of the distributorship.

Direct Exporting

The process by which a company sells its products directly to buyers in a foreign market without the use of an intermediary.

Antidumping Duty

A tariff imposed by a government on imported goods thought to be priced below fair market value to protect domestic industries.

Tariff

A tax on imported goods.

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