Presentation on FIN-402 Assignment

Presented By: Maria Akter (173008045)

Diversification Analysis of International
Project

 Measure of diversification
 The Effects of International Diversification on Portfolio
Risk
 Impact of diversification and internationalization on
company performance
 Multinational Business Diversification on the Financial
Sustainability
 International Diversification

Growing global economy

understanding international stock

market

vital instrument for investors

wishing to diversify

effective international portfolio

diversification
Measure of diversification

 Various measures of firm diversification have been

developed over the past decades. The current study uses
entropy measure to calculate the levels of diversification,
which is called diversify.
• Independent variables, and company age, size and Test
year as control variables
• The total number of observations included in the
bootstrap truncated regression model
• The financial performance of construction
companies
• Multicollinearity between the variables of the
bootstrap truncated regression model was tested
internationalization on company performance
Impact of diversification and
Multinational Business Diversification on the
Financial Sustainability

a high proportion of the business

portfolio of construction firms

contributes to the deteriorating

financial stability of construction firms

this perspective, expansion to overseas

markets by construction firms can be
considered reasonable in terms of
multinational diversification
 Change in Equilibrium Exchange rate

 Exchange rate
 Demand for currency
 Floating exchange rates
 Foreign exchange market
 Purchasing Power
 Change in equilibrium exchange rate
 Change equilibrium rate and interest rates
Exchange rate
The equilibrium exchange rate is the
interaction of the supply of a currency
and the demand for a currency

The equilibrium exchange rate is the

interaction of the supply of a currency
and the demand for a currency

This will place downward pressure on

the price
Floating exchange rates

• The things that cause

shifts in the supply or
demand of a currency
with

• changes in quantity
supplied or quantity
demanded
Foreign exchange market elements of a market

 Demand - the demand for the currency that is being

exchanged
 Supply - the supply of the currency that is being
exchanged
 Quantity - the quantity of the currency that is being
exchanged
 Price - some other currency that is being used to buy the
currency that is being exchanged
Change in equilibrium exchange rate
Change in equilibrium exchange rate
Thank You