Globalization

In reality, globalization makes it difficult not to feel the effects of the international markets regardless of whether you invest internationally. Economies interact every day and rely on each other for goods and services through trade. When political and economic situations change around the world, America's interactions with those countries may change. A domestic company that relies on items manufactured overseas might be affected by changing conditions. So, even if you only invest domestically, you'll probably feel the influence of what's happening abroad.