International investing is something that many investors find they can benefit from for many reasons. Growth and diversification are two of the main reasons why investors choose to invest in foreign markets. Growth allows investors to take advantage of new opportunities in foreign emerging markets. International markets can potentially provide opportunities that might not be available in the United States. Diversification allows investors to spread their risks across different foreign markets and companies other than those in the United States, allowing them to potentially generate greater investment returns and reduce risk. (US Securities and Exchange Commission, 2012) Although investing internationally can be a very lucrative and rewarding decision, investing internationally also carries additional risks. One of the main risks faced by international investors is foreign exchange risk, also known as foreign exchange risk. Foreign exchange risk is a financial risk created by encountering unanticipated changes in the exchange rate between two currencies. These changes may result in unpredictable gains or losses when investment profits are converted from a foreign currency to U.S. dollars. Investors can take precautions to potentially reduce their risk of fluctuations in currency values ​​and other risk factors present in international investments. (Gibley, 2012)Why invest internationally? Some investors are wary of the international investment process, believing it is always too precarious and complex. Although international investing involves risks, there are also very beneficial and profitable reasons to do so. Ev...... middle of paper ...... M. (July 24, 2012). Why invest internationally? Schwab.com. Retrieved February 14, 2014 from http://schwab.com Parto, C. (March 8, 2012). Protect your current investments from currency risk. Investopedia.com. Retrieved February 14, 2014, from http://www.investopedia.com/articles/forex/08/invest-forex.aspKuiper, J. (May 18, 2011). What is currency risk? About.com. Retrieved February 14, 2014 from http://internationalinvest.about.com/od/foreigncurrencies/what-is-currency-risk.htmNguyen, J. (September 8, 2011). The 3 biggest risks facing international investors. Investopedia.com. Retrieved February 25, 2014 from http://www.investopedia.com/articles/basics/11/biggest-risks-investors-face.htmU.S. Security and Exchange Commission. (August 14, 2012). International investment. SEC.gov. Accessed February 25, 2014 from https://www.sec.gov/investor/pubs/ininvest.htm