Global Investment: How to Invest Internationally
In business you never want to put all your eggs in one basket. We’ll show you why a global investment strategy is a smart way to diversify your income.
Thanks to innovations in transportation technology and rapid growth of the internet, the world is quickly becoming a global village. Businesses are leveraging the power of globalization to enter new international markets and turn out more profit.
Today, it’s not uncommon to find a McDonald’s restaurant in Vietnam, a Shell-branded gas station in Tanzania, or a Nike store in Dubai.
If you’re an entrepreneur wondering whether or not to take your business global, there couldn’t be a better time than now.
In this article, we’re sharing why you should adopt a global investment strategy.
Diversify Your Assets
A smart investor never puts all his eggs in one basket.
The United States housing bubble of 2008 is a good example of what can happen if you invest in a single industry. Investors who had all their eggs in the real estate industry no doubt had them fried.
Do you want to be like them? That’s an obvious no.
The best thing to do is to invest in multiple industries so that if one industry crashes, you have several others to count on.
But did you know an entire country can crash, too? Political disruptions and wars are some of the reasons that can push a country’s economy to the ground. If this happens, your business will likely collapse.
This is where global investment comes in.
When you diversify your investments into foreign countries, you’re able to protect your assets from political and economic risks in your native country.
Grow Your Profits
Sometimes there’s only so much you can do to grow your revenues when you’ve already conquered your domestic target market. Sure, you could innovate a new offering, but that will be like starting a whole new business again. There’s no telling whether it will flop or succeed.
Why not look beyond your borders and sell your current product in foreign markets?
With a global investment strategy, you can easily break into new international markets, sell more products and grow your revenues. Without foreign markets, many American multinational companies wouldn’t be pulling in the revenues they’re doing today.
Benefit from Foreign Exchange Rates
The foreign exchange markets are always in a constant swing. One moment your local currency is strong, the next moment it’s weakening.
It’s in those swings investors like you can make boatloads of money.
When you pursue investments that are global, you’re able to benefit from weaker foreign currencies when your domestic currency is stronger. This means you can buy more of the weaker currency.
For instance, if you open a business in Japan, you’ll find it cheaper to buy the Japanese yen when the US dollar is the stronger of the two currencies. You can buy more of the yen with less dollar and if you’re into trading stocks, you’ll have more money to buy local stocks.
While we’re at it, why not learn how to trade Japanese stocks?
Global Investment Is the Next Business Frontier
Technology is opening up international borders in unprecedented ways.
Savvy investors are fully taking advantage of the global market, and, as we have demonstrated, global investment is well worth it. However, be sure to research entry barriers and potential risks before investing in a foreign country.
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