Because we live in a day and age when it is easy to instantly connect to other parts of the globe, our economy and financial world has become much more global in scope and significance. When investment abroad looks attractive, there are also numerous ways to participate in foreign investments, without having to leave the comfort of home.
Here are four examples of international investment tools, for those who are looking to diversify by putting their homegrown money to work overseas.
1) Stock Mutual Funds
Many mutual funds which are bundles of stocks managed by professionals and available in share form to mutual fund shareholders invest specifically in foreign companies. You can invest in a particular regions, such as Latin America or Asia, or you can invest in several regions at the same time.
2) Foreign currency
Because most nations have their own currency, and because it is valued according to the assets of that particular country, you can invest through buying and selling foreign money. You might, for example, buy the Japanese Yen if you think that the Japanese economy and its currency are going to outperform your own USA dollars. Some...