International investment portfolios can be beneficial because:

A) They provide working capital for local companies and financing for foreign government operations.
B) They keep uninformed investors out of the market so only those "in the know" can make wise investment decisions.
C) They concentrate risk so not all countries are likely to be affected by economic downturns.
D) International financial transactions are more predictable.

International Investment Portfolios

Collections of international financial assets including stocks, bonds, and other securities, held by investors to diversify risks and achieve financial goals across global markets.

Working Capital

The measure of a company's operational liquidity, calculated as current assets minus current liabilities.

Economic Downturns

Periods of reduced economic activity characterized by declines in GDP, employment, and trade, often leading to increased unemployment and financial hardship.