Pure international funds invest entirely abroad. You can focus on areas of the world you like, such as European region funds to make a play on the introduction of the euro common currency, and avoid the places that scare you. But there are plenty of foreign funds in stable countries and stable economies. Most people will do just fine investing overseas if they stay with mainstream investments. Let a pro decide where you go.
Global funds can keep some of their money at home.
In recent years, global managers often goosed their returns by loading up on domestic stocks. You sacrifice knowing exactly where the money is going for the manager's ability to see good investments no matter where they arise. Invest in domestics that make their money abroad. Legendary investor Warren Buffett has long insisted that Coca-Cola was not a beverage company so much as an international stock. It is one of countless large domestic companies whose fortunes depend on global markets.