When the U.S. dollar declines, investors think more about international diversification. This can be accomplished by many different means such as buying a foreign stock, buying an ADR of a foreign company or investing in an international fund. However, one method that is often overlooked is buying large U.S. multi-national companies.
As a result of globalization, many large U.S. companies now realize a significant percentage of their revenue from foreign markets. Companies that are diversified across several economies offer a real diversification benefit to their investors. They often can reallocate resources from slowing national economies to areas in the world that are enjoying more robust growth.
