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Why Is Portfolio Diversification So Important in International Trade

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Why is portfolio diversification so important in international trade?


Definitions:

Characterization Frame

A cognitive structure that helps in organizing perception and understanding of a narrative or situation by setting particular perspectives and interpretations.

Identity Frames

The perspectives individuals use to perceive and interpret their social positions or identities, affecting how they approach interactions and conflicts.

Experience

The knowledge or skill acquired by a person through direct involvement in or exposure to events, activities, or phenomena.

Saving Face

The act of maintaining respect, dignity, or honor in a social context, often by avoiding embarrassment or distress.

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