13. ADRs versus Direct Holdings. When you are con- structing your portfolio, you know you want to include Cementos de Mexico (Mexico), but you can- not decide whether you wish to hold it in the form of ADRs traded on the NYSE or directly through pur- chases on the Mexico City Bolsa.

a. Does it make any difference in regard to cur- rency risk?

b. List the pros and cons of ADRs and direct pur- chases.

c. What would you recommend if you were an asset investor for a corporation with no international operations or internationally diversified holdings?