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One of your clients is looking to diversify their portfolio, and asks you to analyze the ratios and financial statements of various foreign companies. Before

One of your clients is looking to diversify their portfolio, and asks you to analyze the ratios and financial statements of various foreign companies. Before you advise your client where to invest a large sum of money, (1) what are some of the potential problems in analyzing foreign financial statements, and (2) why should you be careful in comparing financial ratios across companies operating in different countries.

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