World experienced an explosion of cross-border investments

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The world experienced an explosion of cross-border investments before the global crisis of 2007/08, both in terms of foreign direct investments (much of it by market leaders creating global supply chains) and portfolio investments (by pension and mutual funds globalizingtheir clients' portfolios and taking advantage of the opening of many countries during that period). What's the idea behind those global supply chains? Why does it make sense to have global portfolios of financial assets?

Reference no: EM131336634

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