International Portfoilo investment is affected by following few factors 1) Foregin Exchage Rate: According to Purchasing power parity Interest rate is related to exchange rate therfore Developed countries where interest rates are very low they look for investment internationally where rates are high 2) Country Risk: It is the important factor which plays vital role of deciding investment participation. Politically volatile countries attract low internatioanl investment in terms of FDI 3)Currency Risk: Highly depreciated risk in which fixed exchange rate dont support the macroeconomic prudentials Solution International Portfoilo investment is affected by following few factors 1) Foregin Exchage Rate: According to Purchasing power parity Interest rate is related to exchange rate therfore Developed countries where interest rates are very low they look for investment internationally where rates are high 2) Country Risk: It is the important factor which plays vital role of deciding investment participation. Politically volatile countries attract low internatioanl investment in terms of FDI 3)Currency Risk: Highly depreciated risk in which fixed exchange rate dont support the macroeconomic prudentials.