ISBN: 0-03-031529-8
NEWSWIRE - March 18, 2002
Topic: Global Diversification
Source: "One World: National Economies, After Fading in Unison, Hint at a Joint Upturn," by Christopher Rhoads and Jon E. Hilsenrath, Wall Street Journal, March 18, 2002, page A1.
Synopsis of Article: The article discusses the recent phenomenon of the economies of many nations moving down and then up in unison. Many reasons for the economies moving together are mentioned. The article provides an opportunity to discuss the benefits of international diversification and how these benefits are impacted by the recent phenomenon of economies moving together.
Questions and Teaching Note:
- Why have there historically been benefits of international diversification?
- Why have the economies of many nations, including the U.S., been moving more in unison recently?
- What are the implications of higher correlations among international economies for international investing?
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