Companies who borrow to fund their growth carry higher debt costs, which usually means lower profits. This can influence the company's stock price. International investment risk. Investing in non-US securities poses some unique risks, particularly political and currency risk. For example, if a country's government changes the rules of commerce or experiences political unrest, the companies in that country may pass on the negative impact of such changes to their investors.
Currency risk is more prevalent.
The actual value of a foreign investment depends on how its currency relates to the US dollar. When the dollar is strong, foreign investments tend to return less in dollars. Market risk is the likelihood a broad market, such as the bond or stock market, will decline in value. Volatility risk is the up and down movement of the value of any investment. Some investments are more volatile than others.