Are Multinational Corporations Superior Investment Vehicles for Achieving International Diversification?
Author InfoIke Mathur (Southern Illinois University) Kyran Hanagan (Southern Illinois University) Abstract International portfolio diversification is advantageous to the investor from a risk reduction viewpoint. Investing in MNCs and direct investing in foreign firms are 2 methods of diversifying internationally. Two issues are examined in this paper: Are there barriers to direct international diversification by investors? Do MNCs enjoy certain unique economic and financial advantages? Positive responses to both of these questions indicate that MNCs are in fact superior investment vehicles for achieving international diversification.© 1983 JIBS. Journal of International Business Studies (1983) 14, 135–146 Download InfoTo download: If you experience problems downloading a file, check if you have the proper application to view it first. Information about this may be contained in the File-Format links below. In case of further problems read the IDEAS help page. Note that these files are n