Multinational operations confer firms a portfolio of switching options that offer the potential for operating flexibility in the context of input cost variability, allowing firms to reduce downside risk. In this paper, we argue that two conditions may shape the relationship between...

We show that mutual funds worldwide provide substantial international exposure through their domestic holdings of multinationals. An average domestic fund's international exposure increases by 32 percentage points when we consider international corporate diversification. We find that funds with...