1. Problems of International investment

• Unfavorable exchange rate model

• Frictions in the International Financial market

• Manipulation of security prices

• Unequal access to information

2. Modes of international portfolio investment

• Buying foreign securities or depository receipts directly from the domestic stock exchange if such securities are listed there

• Approaching international mutual funds

• Approaching closed end country funds

• Buying directly the securities of domestic companies having global operations