The Risks of investing internationally are: 1.Transaction Costs The biggest barriers of
investing in international markets are the transaction costs. Although
we live in a relatively globalized and connected world, transactions
costs can still vary greatly depending on which foreign market you are
investing in. Brokerage commissions are almost always higher in
international markets compared to domestic rates. 2.Currency Risks
When investing directly in a
foreign market, you have to exchange your
domestic currency (USD for U.S. investors) into a foreign currency at
the current exchange rate in order to purchase the foreign stock.Currency rates vary in different countries and a big risk for investors.
Liquidity risk is the risk of not being able to sell your stock quickly enough once a sell order is entered.