How European is Europe?

Feb 13, 2013

Many European companies have been at the vanguard of globalization and exhibit considerable diversity in their geographic scope today. An analysis of the economic exposures of many European companies to different countries and regions highlights the companies, sectors and even countries that are deriving their revenues from abroad versus those that remain largely tied to the European economy. Using Europe as an example, we explore the applications of economic exposure data in investment policy, active portfolio construction and risk management.