Globalisation in the investment industry is primarily associated with investors' tendency to do what?

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The primary association of globalization in the investment industry is reflected in investors' tendency to look outside their local market for investment opportunities. This inclination stems from the advancements in technology, communication, and transportation that have made it easier for investors to access global markets.

As markets have become more interconnected, investors can diversify their portfolios by exploring assets in different countries, which often provide opportunities for higher returns or mitigate risks associated with market-specific downturns. By seeking investments beyond their local environments, investors can benefit from various economic conditions, industries, currencies, and growth prospects that may not be available domestically.

This trend encourages broader market participation and can lead to improved capital allocation worldwide, enhancing overall investment efficiency. Consequently, globalization facilitates the movement of capital across borders, thereby increasing the interdependence of markets and economies.

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