In the past two to three decades, international equity investing has changed in structure. This is mostly due to the fact that correlations between global markets have become more closely integrated, which means that investing in another country may not be worth the resources that are allocated for it. The arguments for global portfolio diversification tend to be centered on decreasing portfolio risk or increasing portfolio expected return relative to a comparable domestic portfolio.
What actually happens with the inclusion of global equities is that the efficient frontier shifts out and enables
