Appreciating foreign currencies relative to the dollar increase the overall cost of investing in theU.S.
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Quotas and tariffs on imports imposed by governments to protect domestic industries tend to discourage foreign direct investment.
Firms with significant expertise, brands, patents, copyrights, and proprietary technologies seek to grow by exploiting these advantages in emerging markets.
Excess capacity in many industries often drives M&A activity as firms strive to achieve greater economies of scale and scope, as well as pricing power with customers and suppliers.
Firms investing in industries or countries whose economic cycles are highly correlated may lower the overall volatility in their consolidated earnings and cash flows.