International Investing

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DEFINITION of 'International Investing'

The strategy of selecting globally-based investment instruments as part of an investment portfolio. International investing includes such investment vehicles as mutual funds, American Depository Receipts, exchange-traded funds (ETFs) or direct investments in foreign markets. People often invest internationally for diversification, to spread the investment risk among foreign companies and markets; and for growth, to take advantage of emerging markets.

BREAKING DOWN 'International Investing'

International investments can be included in an investment portfolio to provide diversification and growth opportunities. All types of investments involve risk, and international investing may present special risks, including:
-Fluctuations in currency exchange rates
-Changes in market value
-Significant political, economic and social events
-Low liquidity
-Less access to important information
-Foreign legal remedies
-Varying market operations and procedures

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