1. An international portfolio has lower risk and higher returns than a domestic portfolio because it includes larger, more diverse firms not affected by changes in any single country's economy. The London Stock Exchange, for example, saw continuous increases over 5 years according to Yahoo Finance.
2. International diversification provides greater risk-return benefits for businesses by stabilizing returns and diffusing risks across countries. Losses in one country can be offset by profits in others, reducing overall business risks and providing more stable or higher returns.
3. The gains from diversification are similar for both investors and businesses, who both benefit from investing or operating across multiple nations. However, investors benefit from economic cycles while businesses benefit from different business cycles