Abstract The mandate of this paper is to offer advisory opinion on international investments to Content Cow Dairy Inc. given by Alexander and Kravis (A&K). The core mandate is to explain what is meant by investments and portfolio diversification. The key objective is to establish reasons why it is advisable to have foreign investments, particularly, in Egypt where the firm seeks to invest. In addition, it will explain the risks associated with international investments. Direct foreign investments Direct foreign investment is defined as the process by which a firm in some particular country seeks to increase its production capacity in other regions. It implies increasing production in other regions after succeeding in its parent country. It offers solace to any firm that seeks to have portfolio diversification with an aim of reducing risks that may arise. It involves the inflow of investments by the firm seeking to boost its market share in other regions. The investment is a sum of short- and long-term capital, normally manifested in the balance of payment. In this regard, Content Cow Dairy Inc. can use several avenues presented by foreign investments to increase its market share. It is advisable that companies like Content Cow Dairy Inc . take advantage of their massive technological know-how and influence the market. Once a company has excelled in offering quality products and services within its locality, it should consider moving Offshore and replicate the same. This is a very sane way of reducing the risks associated with having all the investments within the same locality. Similarly, Content Cow Dairy Inc. has excelled in offering quality products in the local market, it can replicate them in Egypt .This is because the country has not fully benefited from technological advancement in as far as milk and its products are concerned. The above discussion justifies the reason why foreign direct investment is a proper way to have portfolio diversification. Foreign investments As explained below, it is advisable to have foreign investments. A company that enjoys comparative advantage should consider making use of it. This can be done by investing in other countries that are under utilized. (Strachman et al, 2010) Similarly, the returns can be sustainable owing to the fact that few international companies have ventured into the country. Content Cow Dairy Inc . just like any other company must make use of their capacity by investing in underutilized markets. By so doing, they will be increasing their revenue. On the same note, they will be reducing their risks. This is the essence of portfolio diversification for any company. The technological advancement of Content Cow Dairy, Inc. means that it can competitively fight for its place in that market. A company can diversify its portfolio if the prevailing market condition is unfavourable. By investing in other markets, it will be in a position to either maintain its income or increase its income. It should move to other countries that have not been fully utilized. The USA currently has a volatile market. This is attributed to numerous companies that have continuously offered stiff competition to Content Cow Dairy Inc. Therefore, it is imperative that the firm diversifies to avoid any future risks attributed to having all the investmen